Dr. Reddy’s Laboratories Ltd. on Wednesday announced its consolidated financial results for the fourth quarter and full year ended March 31, 2023. In its statement, the pharma major revealed that the FY23 has been a year of record sales, profits, and cash flow, driven by our performance in US Generics.
In the fourth quarter that ended March 31, 2023, the pharma company reported net profit increased manifold to ₹959 crore as against ₹88 crore in the same period last year.
While briefing the media, Parag Agarwal, Chief Financial Officer, Dr. Reddy’s Laboratories, informed that the total revenue of the Hyderabad-based company grew 16 per cent at Rs. 6,297 crore as against Rs. 5,436 crore.
Moreover, the company’s net profit increased 18.3 per cent to Rs. 4,507 crore as against Rs. 2,356 crore while the revenue increased 15 per cent at Rs. 24,588 crore (Rs.21,438 crore) for the full year.
On the plans of launching generics for the off-patent drugs, Erez Israeli, Chief Executive Officer, Dr. Reddy’s Laboratories told Financial Express.com: “On the number of off-patent products, we are watching and tracking the drug that will become off-patent this year. We actually have a nice wishlist. In terms of cash allocation, doing licensing deals with other companies is a priority for us and we will see in the next coming months.”
In the Global Generics Business, FY23 revenue for GG segment at Rs. 213.8 billion higher by 19% over FY22. This growth was driven by North America, Europe and India, while Emerging markets remained flat.
The Q4 revenue at Rs. 54.3 billion, YoY growth of 18% and QoQ decline of 8%. YoY growth was driven by growth in North America, Europe and India markets; however, partially impacted due to a decline in revenues in Emerging Markets. QoQ decline was mainly due to a decline in North America and Emerging Markets, partially offset by growth in Europe and India.
In the North America market, FY23 revenue from North America Generics for the year at Rs. 101.7 billion, YoY growth of 36%. The growth was contributed by new launches, scale up of existing products and favorable forex rates movement, which was partially offset by price erosion. Meanwhile, Q4 revenue at Rs. 25.3 billion, YoY growth of 27% and QoQ decline of 17%. YoY growth was primarily on account of new product launches and favorable forex rates movement, partly offset by price erosion. QoQ decline was due to fluctuation in demand for our new launches, it added.
It is noteworthy that in this market the company launched 6 new products – Difluprednate, Lurasidone Tablets, Lubiprostone Capsules, Sunitinib Capsules, Nelarabine Injection and Timolol Gel. This takes the full-year launch count to 25 products.
In the India business, FY23 revenue from India at Rs. 48.9 billion. YoY growth of 17% was primarily attributable to increase in prices of their existing products, along with additional revenues from the launch of new products. Moreover, the growth was also aided by the divestment of a few non-core brands during the year.
During the year, we launched 9 new brands in India.
On business growth plan for the current quarter as well as current financial year, M. V. Ramana, CEO, Branded Markets (India & Emerging Markets), Dr. Reddy’s Laboratories told Financial Express.com: “If you take our India business, we have identified a set of plans behind which we are investing whether it is through product management process or whether it is through productivity. The second measure for us apart from our own portfolio of products that we are planning to launch would be to look at the business development to strengthen our portfolio in the respective therapeutic areas. While we are doing this, we are also in the process…Parag also mentioned this…we have done a few licensing deals which are in the area of head-away to assets. Those innovative assets fall into NVs and digital therapeutics.”
Ramana also informed that they consider India as a source of innovation.
“In India, we consider India…as a source of innovation…we obviously would track for different innovations and see how we could scale them in India or outside of India. The three areas that we are working on in India are in innovative products, consumer health and the third one is digital. So, both in terms of our strategy to grow in India and aspire for top 5 continues to grow in both Horizon 1 as well as new initiative in Horizon 2,” he added.
Ramana also informed that they also plan to increase the number of products as we get into FY24.
According to the company’s statement, Q4 revenue at Rs. 12.8 billion, YoY growth of 32 percent and QoQ growth of 14 percent. YoY growth was primarily driven by favorable price variance, new product launches, and non-core brand divestments while QoQ growth was primarily due to the divestment of a few non-core brands, partially offset by a decline in volumes of some of our products.
