Dr Reddy’s Q4 net up 76% at Rs 764 crore on greater revenue contribution from US, Europe

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May 21, 2020 4:30 AM

For the full year, net profit increased by 11.2% at 1,949.8 crore, as against Rs 1,879.5 crore, on a revenue of Rs 17,460 crore, up by 13% from Rs 15,385 crore.

Revenues stood at Rs 4,431.8 crore, up by 10% from the year-ago period. Revenues stood at Rs 4,431.8 crore, up by 10% from the year-ago period.

Pharma major Dr Reddy’s Laboratories reported a net profit of Rs 764.2 crore for the fourth quarter, up by 76% from Rs 434.4 crore in the corresponding quarter of last year, on the back of greater contribution of revenues from the US and European markets. Revenues stood at Rs 4,431.8 crore, up by 10% from the year-ago period. For the full year, net profit increased by 11.2% at 1,949.8 crore, as against Rs 1,879.5 crore, on a revenue of Rs 17,460 crore, up by 13% from Rs 15,385 crore.

The company’s global generics segment clocked a 20% year-on-year increase to Rs 3,639.8 crore. Among other geographies, Europe’s segment saw a jump of 80% in revenue while North America and emerging markets rose 21% and 15%, respectively, while India revenues rose 5% year-on-year.

“FY 20 has been a very positive year for the company. Progress made during the year includes VAI status for CTO 6, healthy product pipeline build up, productivity improvement and strong financial performance across our businesses,” GV Prasad, Co-Chairman and MD, said. “We have taken up various initiatives to ensure that our manufacturing-related operations continue unabated enabling us to serve our patients. A few products related to Covid-19 are under development,’’ he added.

While the revenues from global generics stood at Rs 3,639.8 crore, a y-o-y growth of 20%, the pharmaceutical services and active ingredients (PSAI) segment revenues stood at Rs 719.5 crore as against Rs 676.5 crore in Q4 of FY19. Revenues from North America generics showed a y-o-y growth of 8% with new launches, scale-up of existing products and a favorable forex rate, which was partially offset by price erosion. The volumes were higher partially due to Covid-19 related stocking up.

During this quarter, the company launched five new products – major ones being Naproxen and Esomeprazole Magnesium delayed-release tablets (gVimovo), Pyrimethamine Tablets (gDaraprim) and Naloxone HCL Injection (with CGT exclusivity). As of March 31, 2020, cumulatively 99 generic filings are pending for approval with the USFDA (97 ANDAs and 2 NDAs under the 505(b)(2) route). Out of the pending ANDAs, 54 are Para IVs, and 30 have ‘first to file’ status.

Revenues from India showed a growth of 11%, driven by improved realisations in base business, volume traction and new products launched during the year. While the y-o-y growth was 5%, there was a decline of 10% q-o-q due to logistics related disruptions caused by Covid-19 lockdowns. Revenues from Europe for the year showed a y-o-y growth of 49%, primarily on account of volume traction in base business and new product launches across our markets, including newer markets of France, Italy and Spain, which was partially offset by price erosion.

The PSAI business registered a y-o-y growth of 7% largely driven by increase in volumes of key products of API business and favorable forex. During the year, the company has filed 10 drug master files (DMFs) in the US. In the proprietary products (PP) segment, the company posted a y-o-y growth of 67%. During the year, the company sold its US and select territory rights for Zembrace, Symtouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg, of its neurology franchise.

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