News: Dr Reddy's eyes firms in Italy, Spain

(RTR 13/09/2006) Mumbai - Indian drug maker Dr. Reddy's Laboratories Ltd. is seeking acquisitions in Italy and Spain and will eye France next to expand in Europe, Chief Executive G.V. Prasad told Reuters on Wednesday.

"We are building up those countries. We have started an office in Spain, we are in the process of setting up in Italy ... We are on the lookout," he said in an interview.

Prasad said the company's acquisition of Betapharm this year placed it in a strong position in Germany, but revenue from the firm would be a little short of earlier estimates of $200 million for 2006/07 because of pricing pressure.

"Revenue side may be slightly falling short because of the pricing pressure. That is a one, one-and-a-half year problem, I think."

Prasad said he was upbeat about the company's key U.S. market.

"This year has been very good, next year will also be decent, but in the long term this is a tough market, and it is a very competitive market; we have to be constantly on our toes to create value here."