Generic drugmaker Dr. Reddy’s Laboratories reported consolidated net profit increased a tad under 2% during the December quarter to ₹1,404.2 crore from ₹1,380.9 crore in the year earlier.
The muted growth came on a nearly 16% increase in total revenue from operations at ₹8,381.2 crore (₹7,236.8 crore), the results prepared as per the Indian Accounting Standards (Ind-AS) showed.
Growth in mainstay global generics revenue was largely driven by revenues from the nicotine replacement therapy (NRT) portfolio, outside of the U.S., acquired from British consumer healthcare firm Haleon, the company said. Global generics revenue contributed ₹7,381.3 crore (₹6,312.4 crore), while share of Pharmaceutical Services and Active Ingredients (PSAI) business segment declined marginally at ₹1,038.7 crore (₹1,058 crore).
The company, in a presentation based on the resulted prepared as per International Financial Reporting Standards (IFRS), said in the North America market, which includes the key U.S., market, volume growth coupled with new product launches and favourable foreign exchange was offset by price erosion on a YoY basis. At ₹3,380 crore, the generics revenue from North America was a YoY increase of 1% and QoQ decline of 9%. The decline was largely on account of lower sales of certain products, including cancer drug Lenalidomide, Dr. Reddy’s said.
Revenue from the Europe generic market, including from the NRT portfolio, stood at ₹1,210 crore, a surge of 143% YoY and 110% QoQ. Excluding the NRT share, the underlying growth is 22% YoY and 5% QoQ, the company said.
Generics revenue from Emerging Markets at ₹1,440 crore was 12% higher YoY and flat QoQ. Market share expansion as well as new product launches were behind the increase YoY.
In the domestic market, Dr. Reddy’s posted ₹1,350 crore revenue during the third quarter, a YoY increase of 14% and QoQ decline of 4%. Growth was driven by revenues from the in-licensed vaccine portfolio, new product launches as well as price increases, offset partially by lower volume pick-up in certain brands in cardiac and gastrointestinal therapy areas, Dr. Reddy’s said.
“We delivered double digit growth aided by our newly acquired NRT business, new launches and improved operational efficiencies,” Co-chairman and MD G.V. Prasad said in a release.
Published – January 23, 2025 08:53 pm IST
