Drug major Dr. Reddy's Laboratories on Wednesday said it will soon launch the generic version of blockbuster cancer drug Revlimid.

Earlier this year, Indian pharma company Natco launched the generic version of blockbuster cancer drug Revlimid in partnership with Teva Pharmaceuticals.

Revlimid is a cancer drug by Bristol Meyers Squibb (BMS) and it's used for conditions such as blood cancer. The drug generated sales of $12.8 billion in 2021 in terms of global sales. BMS settled with around 10 companies on the launch of the generic version of the drug.

Settlement terms for most included a volume-limited launch till January 2026 with no limitations thereafter. The drug lost exclusivity in 2022 when Teva launched the drug in partnership with Natco.

What makes Dr. Reddy’s different from other companies that settled with BMS? Dr Reddy’s has 180-day exclusivity on 2 strengths - the 2.5 mg and 20 mg versions of the drug. Natco had exclusivity on the 5, 15 and 25 mg strengths which they launched in March 2022.

Dr Reddy’s which settled with BMS in September 2020 and received final approval from the US drug regulator on 2.5 and 20 mg strengths in 2021 is expected to be launching all strengths of the drug as Natco's exclusivity period ends, However, Dr Reddy’s will be the only company to sell the generic version of the 2.5 and 20 mg version of the drug in the US till March of 2023.

So how lucrative an opportunity is this for Dr Reddys and others? Over the next three years, the contribution is estimated to be as much as $600 million for Dr Reddy’s as it has exclusivity on 2 strengths and up to $300 million for the likes of Cipla which has received USFDA approval for the drug and said that they will be shipping the drug shortly. Sun, Zydus too could make up to $300 m as per analysts if they launch the drug now.

The contribution of Dr Reddy’s depends on a few factors such as the contribution from the 2.5 and 20 mg versions of the drug which are only about 10 percent of the total market of Revlimid.

Also, while Natco has exhausted its volume limitations in Q4 and Q1, it could be an opportunity for Dr Reddy’s to grab their share, but the opportunity might just be limited due to a cap on the amount Dr Reddy’s and others can sell.

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