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Hyderabad
Driven by a strong growth in the US and European markets and favourable forex situation, pharma major Dr Reddy’s Laboratories has posted a net profit of Rs 1,480 crore in the second quarter ended September 30, 2023, showing a growth of 33 per cent year on year.
It registered a revenue of Rs 6,880 crore in the quarter as against Rs 6,302.70 crore in the comparable quarter last year, showing a growth of 9 per cent year on year.
During the quarter it spent Rs 544.70 crore on research and development, constituting 7.9 per cent of its revenues.
“We continued to build on the momentum that we have created in the last few quarters and this is yet another strong quarter with the highest ever sales and profits,” Parag Agarwal, Chief Financial Officer of Dr Reddy’s, said.
The North American market contributed 46 per cent of the revenues (Rs 3,100 crore) in the quarter, showing a growth of 13 per cent year on year. “The growth was driven by leveraging existing portfolio, contribution from new products and favourable forex which was partly offset by price erosion,” he said.
Addressing a press conference on Friday, company’s Chief Executive Officer Erez Israeli said the growth in topline and gains in market share helped the contribution from the US increase.
“India has been a focus market for us. We launched a direct-to-consumer website for diabetes. This will be a future pillar for the company,” Agarwal said.
The company is looking at inorganic growth using a cash balance of Rs 6,978 crore.
CAR T-cell therapy
M V Ramana, CEO (Branded Markets - India and Emerging Markets), said that the company will start clinical trials for its CAR T-cell therapy (a form of immunotherapy which deploys specially altered T cells to fight cancer) for multiple myeloma in November. “Based on where we are today with regards to the readiness of the facility and preparedness for launching clinical trials, we are hoping that we will be the first to bring in CAR t to India,” he said.
Product pipeline
“We delivered another quarter of strong results with highest ever sales and profits, driven by market share gains & momentum in our US generics business and robust growth in Europe. We are continuing to strengthen our pipeline both organically and through business development to drive growth and create differentiation,” Co-Chairman and Managing Director, G V Prasad, has said.
“The growth was on account of growing momentum in our core portfolio, Mayne integration, favourable move from foreign exchange which was partly offset by price erosion,” he said.
“During the quarter, we launched four new products in the US and filed two new Abbreviated New Drug Applications (ANDAs) with the US Food and Drug Administration (USFDA),” the company said in a regulatory filing.
The Indian market contributed 17 per cent (Rs 1,200 crore), registering a year-on-year growth of 3 per cent. “This growth was largely driven by pricing and new launches. The muted demand was due to the weak acute season,” it said.
Of the revenue of Rs 1,200 crore in the quarter from the emerging markets, Russia constituted nearly half (Rs 580 crore), which declined by 3 per cent year on year owing to currency devaluation.
(eom)
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