Dr Reddys (Betapharm) receives preliminary results on AOK tender in Germany
Hyderabad, India, December 10, 2008: Dr. Reddy’s Laboratories (NYSE:RDY) today announced that Betapharm AG, its wholly owned subsidiary, has received complete information on the preliminary result of the tender by the Allgemeine Ortskrankenkassen (AOK) for discount agreements for 47 of the 48 products pertaining to Betapharm, pursuant to § 130a SGB V. betapharm has been tentatively offered 8 products in different regions of Germany covering the AOK-insured persons.
The tender procedure is yet to be concluded and is expected to face potential legal objections by several companies. On signing the final contracts with AOK, betapharm will be the sole supplier for AOK-insured persons for these 8 products in the awarded regions.
VS Vasudevan, President, European Operations, Dr. Reddy’s, said, “The preliminary results of the AOK tender establish betapharm’s competitiveness in the tender segment of the market in Germany. For the 8 products offered, we expect a significant increase in volume though at relatively lesser margins and for the balance portfolio, we expect the competitive intensity to continue.”
“Over the last few years, betapharm has aligned its sales force to strengthen relationships with doctors, pharmacies as well as channel partners. We leveraged Dr. Reddy’s vertical integration and global supply chain capabilities to strengthen the supply chain for this market. beta institute (the groups’ non-profit organization) complements these capabilities with the long-term goodwill it has built with the medical community through several years of Corporate Social Responsibility programmes. We believe that betapharm is well positioned to leverage all these strengths to continue to build a competitive business in all segments of the generics market in Germany”, said Satish Reddy, MD and COO, Dr. Reddy’s.
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