While many biopharma companies from the west have turned away from Russia after its invasion of Ukraine, some in India have filled the void, supplying the country with medical supplies.
One of the Indian companies leading the charge to Russia—while also trying to overcome logistical challenges to deliver treatments to Ukraine—has been Dr. Reddy’s Laboratories.
On Thursday during its quarterly earnings report, Dr. Reddy’s said it planned to launch new products in Russia. For the Mumbai-based company, which ranks No. 4 in market cap among India’s drugmakers, its business in Russia is booming. During the last quarter, sales in Russia increased 70% year-over-year.
“Our Russian operations continue as usual,” Dr. Reddy’s co-chairman and managing director GV Prasad told reporters, as quoted by India's Business Standard. “There was some stocking up of inventory by our customers during the initial period of this ongoing crisis. From the next quarter we expect that to normalize.”
While many pharmas from Europe and the United States have stepped up humanitarian support to Ukraine and ceased most operations in Russia, they have continued to supply the country with drugs.
But many companies in India have continued business as usual in Russia. India is in a tough spot. To protect itself against China, the country has courted support from both Russia and Europe.
The government has taken a hands-off approach and has refused to condemn the invasion. The Indian Drug Manufacturing Association did not respond immediately to a request for more information.
Dr. Reddy’s sells painkillers and other medicines to Russia. The company also is India’s primary supplier of Russia’s Sputnik COVID-19 vaccine. In the previous fiscal year, which ended in March of 2021, sales to Russia accounted for more than 8% of the company’s revenue, coming to $2.47 billion.
On Thursday, Dr. Reddy’s said that it's working to continue to supply drugs to Ukraine despite delivery challenges. The company added that there has been no disruption in funds from Russia.
“We have been there for three decades now,” Dr. Reddy’s CEO of branded markets MV Ramana said, as quoted by Business Standard. “We continue to run our operations as usual. We have taken care of the safety of our employees.”