'Scientific research needs to be scaled up'

G V Prasad

2002 was a sweet and sour year for Dr. Reddy's. The news on Ragaglitazaar and Omeprazole was slightly sour, while our performance in some of the generics such as Fluoxetine, Tizanidine and others were the sweeteners.

December, of course will be a landmark for us because of the favorable court decision in the Amlodipine Maleate case. The ruling represents a significant milestone in the execution of our US specialty business strategy.

The specialty business will be a vital link in our transition from a diversified generic pharmaceutical company to a discovery-led global pharmaceutical company.

All in all, the year ended perfectly with occasion for cheer. We are both confident and excited about our future as we march into 2003, with the overall vision of becoming a discovery led global pharmaceutical company.

The industry continued to adjust itself to the post 2005 scenario with most of the larger players actively globalizing. Ranbaxy's successes in the current year has given everyone optimism about the global opportunities for Indian companies.

Increasingly, Indian companies are recognising the need to globalise with a focus on the US. Another positive trend in the Indian industry is the recognition that the ultimate value lies in drug discovery.

The band of companies in drug discovery is increasing and gathering momentum. The biotech start-ups in Bangalore and Hyderabad are adding to this momentum.

The next year will see a greater momentum behind both globalisation and drug discovery research in the pharmaceutical sector.

The US market will become a key destination for the few brave companies that have already invested in developing the competencies needed. While many other companies will focus on this market, it will be several years before they can create an impact.

Drug discovery will be an even bigger challenge. Companies, which can think big and sustain efforts over a long period, will be destined for greatness. Indian companies ought to move up the value chain in terms of creating intellectual property not only in pharmaceuticals and biotech, but in all fields.

We need to move from providing low cost services to high-end innovation and intellectual asset creation. This will require change on many dimensions.

Industry and academia need to get into an invention mindset. The intensity of scientific research needs to be scaled up. Funding for innovation needs to be available.

Companies must inculcate tolerance for failure and ensure strategic consistency in their efforts. Government must create an enabling environment for science and technology to flourish.

All these are difficult moves, but only then will we achieve greatness as a nation and fulfill our vision of becoming a developed nation.

G V Prasad is executive chairman and chief executive officer, Dr Reddy's Laboratories

2002: The Year That Was