HYDERABAD: Dr Reddy’s Laboratories (DRL) is setting up to acquire small companies globally instead of going for big-bang deals to push sales in overseas markets, said GV Prasad, executive vice-chairman and CEO.
“Our strategy to acquire small companies has no linkage to the experience from the Betpharm acquisition,” he clarified. “One of the priorities for DRL is to target a bigger play in the generics business in the US market.”
We very much like this story….With one exception: why focus on the USA? Yes DRL is active in Germany, the UK, Mexico, and elsewhere, but this new strategy is heavily focused on the US.
Sure the US is the biggest market prize, but for some time now we have openly stated it might not be the BEST prize. Chances are, ego is the driver.
If market entry is based on ego, I might suggest a few others…
- Taipei has the world’s tallest building….soon to be outdone by Dubai,
- Bollywood puts out more movies than Hollywood,
- Macao has the world’s largest casino and its gambling revenue is larger than Las Vegas’, and
- India will soon have the biggest refinery.
And in case anyone isn’t sure about the changes….the USA’s largest shopping mall isn’t in the world’s top 10.
To quote Dr Reddy’s CEO…“One of the priorities for DRL is to target a bigger play in the generics business in the US market.”.….HK