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Biotechnology In India: Dr. Reddy's Laboratories

Dylan Waller profile picture
Dylan Waller


  • India's biotechnology industry is projected to grow by 30% annually until 2025.
  • The industry in India has the unique advantages of innovation, high quality, and low cost.
  • Investors can invest in the growth of India's biotechnology through Dr. Reddy's Laboratories, a company in India that also has global operations.

India's Biotechnology Industry

In a previous article, I mentioned the biotechnology bubble, and how a biotechnology company in South Africa was able to outperform the majority of the top 10 biotechnology companies in America. Investing in the biotechnology industry in emerging markets presents the opportunity for high returns without high risks; this favorable investment environment results from the companies having consistent financial performance, diverse global operations, and lower manufacturing costs. With biotechnology in America certainly approaching a bubble, investing in the biotechnology industry in emerging countries may be the most rational solution, for those wishing to mitigate risk.

One major benefit of the biotechnology industry in India is the extreme low cost of drugs, as a hepatitis C drug manufactured in the USA can be obtained in India for 1% of the cost. This is further displayed in the country's ability to produce a Rotavirus vaccine for $1. I can even personally attribute to the country's low cost, as I was able to get a Tetanus shot at a hospital in Madurai for approximately $0.30.

Low-cost manufacturing and innovation attribute to the country's ability to produce quality products at low costs. Prices are set to remain low, as the price hike of pharmaceuticals in India is negligent, and linked to inflation. Most recently, the government approved a 3.84% price hike for 509 different types of medicines used to treat diabetes, hepatitis, and cancer. As a result, India will be able to sustain its advantage as a low-cost manufacturer of pharmaceuticals.

Growth of the Biotechnology Industry from 2002-2012


India has consistently experienced substantial growth in the biotechnology industry, particularly in the pharmaceutical sector. Government support of the biotechnology industry has been consistent, as the government's decision in 2005 to open the industry up to 100% FDI attributed to its growth. With

This article was written by

Dylan Waller profile picture
I am interested in frontier/emerging stock markets and other international markets ( ie. Japan/Korea).  My articles will primarily focus on stocks I am monitoring now based on quality of management/emerging market exposure/valuation.

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