Dr. Reddy’s Laboratories clocked stable results in Q1. The Pharma major reported Q1FY25 profit of Rs 1392 crore. This is flat compared to Rs 1402.5 crore profit in Q1FY24. On a sequential basis the profit is slightly higher than Rs 1307 crore in Q4FY24. The tax rate has essentially impacted the profit performance.
The Q1FY25 revenue is up 14% YoY to Rs 7672.7 crore Vs Rs 6738.4 crore. The growth is driven by increase in base business volumes in US and revenues from Sanofi’s vaccine portfolio in India.
Global Generics business buzzing
Dr Reddy’s Global Generics business is buzzing with Q1 revenue from it coming in at Rs 6885.8 crore, up 13% sequentially from Rs 6119.1 crore in Q4FY24. On a year-on-year comparison, it is up 15% from Rs 6008.3 crore revenue earned in Q1FY24. Markets in India and North America clocked maximum traction with 18% growth each on a sequential comparison.
Collaborations and Inorganic expansion in Q1
The other key highlights in Q1 include Dr Reddy’s acquiring Nicotinell and related brands in the Nicotine Replacement Therapy category in markets outside the US from Haleon for 500 million British pound with an upfront cash payment of 458 million British Pound and performance-based contingent payments of up to 42 million British Pound. This is payable in 2025 and 2026. The transaction is expected to close in early Q4 of calendar year 2024.
The company has also entered into a joint venture agreement with Nestlé India to bring science-backed nutritional portfolio to more consumers in India. The JV is expected to become operational in Q2FY25.
Additionally, Dr Reddy’s has partnered with Novartis Pharma to distribute two of their leading anti-diabetes brands, Galvus and Galvus Met, in the Russian retail market and received exclusive rights from Ingenus Pharmaceuticals to commercialize Cyclophosphamide Injection in the US.
It has collaborated with Alvotech for commercialization of their denosumab biosimilar candidate in the US on an exclusive basis, as well as in Europe and UK. Drug-free migraine management device, Nerivio has been launched in Germany, Spain, UK and South Africa.
The Pharma major also inaugurated a 70,000 sq.ft. state-of-the-art Biologics facility of Aurigene Pharmaceutical Services in
Genome Valley, Hyderabad, India. The commissioning of manufacturing capacity will be completed in 2024.
Commenting on the results, Co-Chairman & MD, G V Prasad said: “We had a good start to the new fiscal year and our growth and profitability was mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation.”
