Dr. Reddy’s Laboratories’ net profit increased by 7 per cent to Rs.361 crore in the quarter ended June 30, 2013, from Rs.336 crore in the year-ago period.
Revenue increased by 12 per cent to Rs.2,845 crore from Rs.2,540 crore due to growth in global generics business in North America, among others.
Giving the details of unaudited consolidated financial results for the quarter ended June 30, 2013, Saumen Chakraborty, Chief Financial Officer, said that the company’s growth was primarily driven by North America and emerging market territories.
While the revenue from North America at Rs.1,087 crore contributed to the year-on-year growth of 37 per cent, in emerging markets, including Russia, it was 9 per cent. However, revenues from India at Rs.349.3 crore remained flat year-on-year. Revenues from Europe declined by 28 per cent.
He said that implementation of the new pricing policy in 2012, coupled with the Maharashtra trade strike, had an adverse effect on the revenue for the quarter.
In the Pharmaceutical Services and Active Ingredients (PSAI), the company’s revenue stood at Rs.586.8 crore with a growth of 6 per cent from Rs.552.7 crore.
During the quarter, the company launched 18 new generic products, filed 12 new product registrations and five DMFs (drug master files) globally, including three in the U.S.
Abhijit Mukherjee, President-Research, said that these were testing times for the generic market in the U.S. and there was a need to graduate to high entry barrier products to create value for the company. It was also looking at a string of capability-based acquisitions and partnerships in the generic space.
“Ten filings will come from external partnerships this year,” he said.