Dr. Reddy’s Laboratories Ltd., an Indian pharmaceutical company, announced a roughly eleven-fold increase in fourth-quarter profit on Wednesday, driven by stronger sales in its core generic pharmaceuticals business in North America.
The Hyderabad-based company’s consolidated earnings increased from 875 million rupees a year earlier to 9.59 billion rupees in the three months ending March 31.
According to Refinitiv IBES statistics, the result, however, fell short of analysts’ forecasts of 9.74 billion rupees.
The company’s generic business had a 27% increase in revenue to 25.32 billion rupees in North America, which accounts for over half of its overall revenues. This growth was fueled by new product launches and the expansion of current products. The company’s generic medicine sales revenue in India increased 32%.
Also read, Drugmakers set strategy for legal fight against US pricing regulation.
Total Revenue of Dr. Reddy’s Labs, India:
The combined revenue for Dr. Reddy increased by 15.8% to 62.97 billion rupees, while operating costs as a whole decreased by 13.3%. For the fiscal year 2023, the business also suggested a final dividend of 40 rupees per share.In advance of the earnings, the company’s shares ended the day on Wednesday 1.3% lower at 4,867 rupees. They have increased 14.9% so far this year, outpacing the Nifty Pharma index’s gain of 0.95 %.
As opposed to Alembic Pharmaceuticals Ltd, which reported a nearly seven-fold increase in quarterly profit, its competitors Lupin Ltd switched from a deficit in the fourth quarter of last year to a profit. This week, Cipla Ltd. is expected to disclose its results.
The rise in the markets of North America, Europe, and India helped the global generic business achieve revenue of Rs 5,430 crore, an 18% YoY increase. However, a decrease in sales from emerging markets had an influence as well.
Revenue from pharmaceutical services and active ingredients was Rs 780 crore, up 3% year over year. According to the company’s BSE report, the growth was fueled by new product releases and beneficial changes in foreign exchange rates. According to the company, it submitted a total of 12 DMFs in FY23 and seven in the US during the March quarter. For FY23, the business board suggested a dividend of Rs 40 per share.
For more health news, click here.