While many western biopharma businesses have shied away from Russia since its invasion of Ukraine, some of those in India have stepped in to fill the hole by providing the Kremlin with medical supplies. Dr. Reddy Laboratories has been one of the Indian companies spearheading the move into Russia while simultaneously attempting to overcome logistical hurdles in delivering medications to Ukraine. Dr. Reddy announced plans to sell new medications in Russia during its quarterly profit release recently. The company, which ranks fourth among India drugmakers in terms of market capitalization, is doing exceptionally well in Russia. Its sales in Russia climbed by 70% year over year in the prior quarter. GV Prasad, Dr. Reddy co-chairman and managing director, confirmed that their Russian operations will continue as usual. During the early stages of this ongoing crisis, their customers did some inventory stockpiling. They expect that to return to normal in the next quarter.
While several European and American pharmaceutical companies have increased humanitarian aid to Ukraine and shut down their activities in Russia, companies like Dr. Reddy have continued to supply the country with medications.
Several Indian companies have continued doing business as usual in Russia. India is in a precarious situation. To defend itself from China, the country has enlisted the help of both Russia and Europe.
The government has been silent on the Russian incursion and has refused to denounce it. Painkillers and other medications are sold in Russia by Dr. Reddy’s. They are also India’s principal supplier of Russia’s Sputnik COVID-19 vaccine. Sales to Russia amounted to more than 8% of the company’s revenue in the preceding fiscal year, which ended in March 2021, totaling $2.47 billion.
Despite delivery issues, Dr. Reddy’s said it is attempting to continue supplying pharmaceuticals to Ukraine. There has been no stoppage of funds from Russia, according to the company. Dr. Reddy’s CEO of branded markets, MV Ramana remarked that they have been in the country for three decades now and are continuing to operate as usual. Their employees’ safety has been prioritised.