Pharma major Dr. Reddy’s Laboratories on Thursday announced its consolidated net profit increased 2 per cent to Rs 1,413 crore in the third quarter ended December 31, 2024. Interestingly, the growth was driven by robust performance across markets.
The Hyderabad-based drug major had reported a profit of Rs 1,379 crore for the October-December period of last fiscal. Revenue increased to Rs 8,359 crore from Rs 7,215 crore a year ago, Dr Reddy’s Laboratories said in a statement.
In an interaction with Financial Express.com, M.V. Narasimham, Chief Financial Officer, Dr. Reddy’s Laboratories revealed that NRT business has contributed to their growth. The quarter’s growth was led by newly acquired NRT business (Nicotinell), new launches, and improved efficiencies.
During the quarter, they also launched Toripalimab in India which is the only immuno-oncology drug approved for RM-nasopharyngeal carcinoma (rare type of head and neck cancer), making India only the third country in the world after the U.S. and China to receive access to it.
“…this entire portfolio is growing in a single digit and clearly, some few quarters are there are tender opportunities for this portfolio, like in Brazil, in Latin and Middle East, and in few of the countries,” he said.
Narasimham also said that in the India market. the overall growth is at 14 percent. “…Without Sanofi vaccines portfolio, we will have a double digit growth. Why we are not at double digit, there are in two therapies especially. One is on the gastro, and the other one is on the chronic. So clearly, we have a certain few challenges,” he shared.
On Dr. Reddy’s Laboratories acute as well as chronic portfolio, Narasimham said that “acute” continues to be a pain and they are trying to fix it.
“…if the market is like if I remember, is growing at 8%, then our growth is at 4 to 5%. So we are trying to fix especially this. Apart from this, like, you be in dermal, oncology, our growth stories are better and significant…we are aware about what are the challenges. We are articulating for India business in the, future. It will continue to drive them, give the double digit base business,” he explained.
He also said that they are working towards strengthening their existing portfolio and this strategy is one of the key focal areas. The company continues to strengthen core business of generics and API, whilst investing in strategic focus areas of consumer health, innovative products (digital therapeutics, novel molecules) and biosimilars.
“…our focus is how we can strengthen our current portfolio as well as how we can bring the complex assets. In line with our strategy…we continue to focus first how we can have a robust product portfolio of our in house. We are also looking at emerging markets. We continue to have anet cash surplus and so we are looking for inorganic opportunities as well,” Narasimham told Financial Express.com.
He also revealed that GLP-1 is one of they key focus areas and they are looking opportunities of launching their offering in Canada market.
“…We’ve already submitted the Denosumab filing both in Europe and US. And also, we can expect a role as first to get stipulated timelines,” he said. Dr. Reddy’s is expecting to launch the product in December 2026.
“Our R&D investments were increased and our investments in biosimilars have also increased, he said. He also said Dr. Reddy’s will continue to invest in new innovations.
“…We are continuously investing in our CapEx. Currently, we are investing for GLP ones, both for API and, our formulation side. We don’t want to lose the opportunity on account of a capacity constraints. And the third, we are continue to invest both in R&D as well as, like, our innovation journey. We are not stopping in any of the investments. We are continuously focusing on both current as well as for the future performance,” he told Financial Express.com.
