Looking to diversify, Indian pharma Dr. Reddy's Laboratories is mulling a move into retail pharmacies and even health insurance. The health insurance idea isn't as novel as it might appear; last month, India's Apollo Hospital Group teamed up with European insurer DKV to start a health insurance company on the subcontinent.
It's an expensive venture, though; insurance companies are required to put up 1 billion rupees, or about $24.5 million at current exchange rates. And though less than 3 percent of the Indian population is insured, there are 15 companies already offering health insurance.
Analysts say that opening retail pharmacies would be expensive for Dr. Reddy's, too - considering real estate, staffing, and the like. But the market is worth $5 billion, and the company does already have a nationwide distribution network.
- read more [1] from the Economic Times of IndiaÂ
Related Articles:
Rumor Mill: Dr. Reddy's bids for Bradley Report [2]
Dr. Reddy's makes risky biogenerics move Report [3]
Dr. Reddy's to buy Betapharm in $570M deal Report [4]
Links:
[1] http://economictimes.indiatimes.com/DRL_eyes_health_insurance_organised_pharma_retail/articleshow/2338461.cms
[2] http://www.fiercepharma.com/story/rumor-mill-dr-reddy-bids-bradley/2007-08-24
[3] http://www.fiercebiotech.com/node/7447
[4] http://www.fiercebiotech.com/story/dr-reddy-s-to-buy-betapharm-in-570m-deal/2006-02-16