Indian pharmaceutical corporation Dr. Reddy?s Laboratories moves headquarters to Princeton

Dr. Reddy’s Laboratories, Inc., an Indian pharmaceutical corporation with 15,000 employees worldwide, will move its North American headquarters to a 75,500-square-foot facility in the Princeton Forrestal Center in Plainsboro, the company has announced.

Dr. Reddy’s also agreed to establish a 31,000-square-foot research facility in the same area. The properties will be located at 107 and 303 College Road East, respectively.

In a company statement, Chairman and CEO G.V. Prasad said that “the relocation will allow Dr. Reddy’s to tap into local talent which will be instrumental in the long-term growth.”

A representative of Dr. Reddy’s declined to be interviewed for this article.

In total, the two facilities are planning to employ 335 employees, who will move in following the completion of renovations in August.

David Knight of the Princeton Forrestal Center explained that Dr. Reddy’s was the latest in a long line of international companies to set up shop in the Forrestal area.

“[Dr. Reddy’s] will add to the incredible number of international companies that are already in the Forrestal Center, starting with Siemens in the early 80s,” he said. “It’s a comment about New Jersey, but it’s also a very specific comment about Forrestal Center as an attractive space.”

On April 19, Novo Nordisk, a Danish pharmaceutical and health care company, will open its $215 million dollar North American headquarters at the Forrestal Center. Nordisk first moved to Princeton in 1982 as part of an early joint venture with what is now New York-based pharmaceutical company Bristol-Myers-Squibb.

Knight noted that, like the other international companies who had come before them, Dr. Reddy’s would benefit from close proximity to the University.

“If [Dr. Reddy’s] reported back to India that they were located ... in Somerset, N.J., it doesn’t do much for folks. But for them to say they’re in Princeton, that really resonates in corporate headquarters,” he said.

“Of course, they’re actually in Plainsboro, but they probably won’t worry about that,” Knight joked.

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Corporations are also attracted to the Princeton area by the town’s vibrant community, according to Thomas Stange, a Director at National Business Parks, who leased the buildings to Dr. Reddy’s.

“Outside of all the wonderful amenities — proximity to Princeton University is among them, I suppose — you’ve got downtown Princeton and the great school systems, not to mention a fantastic neighbor pool," Stange said.

The influx of 335 employees, some of whom will bring their families, may come at a small cost to the community in the form of higher housing prices.

According to Cyril Gaydos, a real estate agent with RE/MAX Greater Princeton, although the number of employees Dr. Reddy’s planned to base in Princeton was relatively small, the company’s move might exert sufficient pressure to raise property prices in the area.

“We’re already seeing multiple bids on houses in Princeton. Many properties are selling after only a few days on the market,” Gaydos explained. “Employees working in the pharmaceutical industry are generally well-paid, and will probably look to purchase properties in districts with highly-ranked school systems, like Princeton’s.”

“Three hundred more families making bids on Princeton homes could drive up prices,” he said.

The company’s former headquarters were located at the Somerset Corporate Center in Bridgewater, N.J. However, Dr. Reddy’s American presence extends beyond the tri-state area.

The company currently operates a 300,000-square-foot plant in Shreveport, La., home to the country’s second largest producer of prescription ibuprofen, the active ingredient used in medications like Advil and Motrin.

On March 29, Dr. Reddy’s announced further plans to move into the American pharmaceutical sector. The company’s drug Zentane, a generic version of severe acne drug Accutane, is set to launch in the United States after receiving approval from the United States Food & Drug Administration.