Pharma major Dr Reddy's Laboratories has reported a 45.3% increase in net profit at Rs 662.8 crore for the first quarter on a year-on-year (y-o-y) basis against a net profit of Rs 456.1 crore a year ago.
Pharma major Dr Reddy’s Laboratories has reported a 45.3% increase in net profit at Rs 662.8 crore for the first quarter on a year-on-year (y-o-y) basis against a net profit of Rs 456.1 crore a year ago. The rise in profit is due to a one-off receipt of Rs 350 crore from Celgene, pursuant to settlement agreement related to Revlimid brand capsules in Canada. Revenues grew 3% y-o-y at Rs 3,843.4 crore against Rs 3,720.7 crore.
“This quarter, we grew in most of our key markets and hope to continue this momentum with a sharper focus on performance. We will continue our journey of operational excellence, cost leadership and innovation across our businesses”, GV Prasad, CEO and co-chairman, said.
The global generics revenues, which contributed a little over 80% to total income, grew 8% to Rs 3,298.2 crore. The generic business from North America, grew 3% at Rs 1,632.2 crore. The y-o-y growth is 3% and sequential growth is 9%, driven by contribution from new products and increase in volumes, partly offset by price erosion coupled with adverse foreign exchange movement. The company launched five new products which include Daptomycin, Testosterone gel, Tobramycin, Vitamin K and OTC calcium carbonate, and re-launched Isotretinoin during the quarter. As of June 30, 2019, cumulatively 107 generic filings are pending for approval with the USFDA (104 ANDAs and 3 NDAs under 505(b)(2) route). Of these 104 ANDAs, 58 are Para IVs out of which 34 have ‘First to File’ status.
Revenue from emerging markets grew 10% to Rs 730 crore, with much of that accruing from Russia of 5%. The domestic market business grew by 15% to Rs 700 crore with a y-o-y growth of 15% and a sequential growth of 7% driven by volume traction and improved realisations in base business and new product launches.
The revenues from Europe rose 19% to Rs 240 crore primarily on account of new products and volume traction due to improvement in supplies.
The pharmaceutical services and active ingredients (PSAI) revenues dropped 16% to Rs 450 crore due to a decline in sales volume of certain products. Sales in its proprietary products division fell 61% to Rs 28 crore as the company divested its key derma products.
Meanwhile, the company said with effect from August 1, 2019, Erez Israeli, the present chief operating officer (COO) will be elevated as chief executive officer (CEO) of Dr Reddy’s Laboratories. GV Prasad will continue as the co-chairman and managing director and Erez Israeli will continue to report to him. Since joining Dr Reddy’s as COO in April 2018, Erez has spear -headed the transformation agenda of the organisation by ensuring clear focus and strategy, setting foundations for a sustainable financial growth and leading business delivery.