http://www.moneyspidery.com/2012/02/04/schizophrenia-pill-olanzapine-weak-rupee-drive-dr-reddys-lab-topline-to-rs-2770-crore/
Much of the revenues came from olanzapine launched in the US market.
The drug, used to treat schizophrenia, contributed almost $100 million
in the quarter.
The company reiterated that the North American market will continue to lead growth, backed by successive launches of highvalue products in the coming quarters.
Satish Reddy, managing director and chief operating officer, said: “We expected to perform well because of the launches that had limited competition to deal with. Our Shreveport facility showed good sales and we have some important launches coming up in the next six months.”
Investors cheered the company’s performance and helped the stock gain a little over 2% to close at Rs 1,670.50 on BSE on Friday.
The generics business in the US, India and other emerging markets were led by high value launches and strong volume growth across key products.
Russia disappointed Dr Reddy’s with the growth curve remaining horizontal due to early stocking of medicines and late onset of winter in the region. As a result, drugs like cetrizine, prescribed to treat seasonal infections, did not sell.
Revenues from Europe grew 14% to Rs 240 crore mainly on account of the rupee depreciation. Back home, biosimilars reported a higher growth of 25% compared to the generics. Satish Reddy said: “We anticipate a 50% growth in Russia for the month of January as seasonal medicine prescription will increase. In India, we are on course to make some tactical changes by means of increase in our rural density and reshuffling our portfolio to increase our revenues.”
The pharmaceutical services and active ingredients business reported a 12% growth with sales in the segment at Rs 560 crore compared to Rs 500 crore in the same quarter last year.
Dr Reddy’s launched 33 new generic drugs, 16 new filings and seven drug master files during the quarter. Commenting on the earnings, Ranjit Kapadia, vice-president at HDFC Securities, said: “The honeymoon for Dr Reddy’s will last another two quarters where they will have some high volume, limited competition products. But after that, the EBITDA will begin to flatten as the markets will open up to other products.
HYDERABAD: Drugmaker Dr
Reddy’s Laboratories’ revenues in the December quarter jumped to Rs
2,770 crore, buoyed by the launch of a star performing drug and a weak
rupee with the highest-ever year-on-year growth of 46%. Shadowing the
revenue growth, the net profit surpassed Street expectations rising by
88% to Rs 520 crore.
The company reiterated that the North American market will continue to lead growth, backed by successive launches of highvalue products in the coming quarters.
Satish Reddy, managing director and chief operating officer, said: “We expected to perform well because of the launches that had limited competition to deal with. Our Shreveport facility showed good sales and we have some important launches coming up in the next six months.”
Investors cheered the company’s performance and helped the stock gain a little over 2% to close at Rs 1,670.50 on BSE on Friday.
The generics business in the US, India and other emerging markets were led by high value launches and strong volume growth across key products.
Russia disappointed Dr Reddy’s with the growth curve remaining horizontal due to early stocking of medicines and late onset of winter in the region. As a result, drugs like cetrizine, prescribed to treat seasonal infections, did not sell.
Revenues from Europe grew 14% to Rs 240 crore mainly on account of the rupee depreciation. Back home, biosimilars reported a higher growth of 25% compared to the generics. Satish Reddy said: “We anticipate a 50% growth in Russia for the month of January as seasonal medicine prescription will increase. In India, we are on course to make some tactical changes by means of increase in our rural density and reshuffling our portfolio to increase our revenues.”
The pharmaceutical services and active ingredients business reported a 12% growth with sales in the segment at Rs 560 crore compared to Rs 500 crore in the same quarter last year.
Dr Reddy’s launched 33 new generic drugs, 16 new filings and seven drug master files during the quarter. Commenting on the earnings, Ranjit Kapadia, vice-president at HDFC Securities, said: “The honeymoon for Dr Reddy’s will last another two quarters where they will have some high volume, limited competition products. But after that, the EBITDA will begin to flatten as the markets will open up to other products.
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