Pharma major Dr. Reddy’s Laboratories, for which Russia and CIS region count among important, growth markets, is closely monitoring developments amid the escalating tensions between Ukraine and Russia.
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“We have been monitoring developments closely and preparing accordingly, and continue to do so,” a company spokesperson said, without sharing specifics, to a query on likely impact for Dr. Reddy’s in the wake of Russia launching military operations against Ukraine.
Noting that Dr. Reddy’s have had a strong presence in the region for over three decades, the spokesperson said “ensuring well-being of our staff is the first and foremost priority, along with meeting patient needs and business continuity”.
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On Sputnik vaccine supplies, Dr. Reddy’s said, “We have manufacturing capabilities in India. Drug substance [of the vaccine] is not imported and hence there is no impact.” Third COVID-19 vaccine to be approved by India, Sputnik is available in the country as part of a partnership between Russia’s sovereign wealth fund RDIF and Dr. Reddy’s. While initial doses of the two dose vaccine were imported, Sputnik is now being made in India, in partnership with a clutch of vaccine manufacturers. India had also recently approved the single dose Sputnik Light vaccine.
For the December quarter, Dr. Reddy’s reported 5% year-on-year increase in revenues from Russia to ₹470 crore on the back of new products launches, a favourable Forex rate and increase in prices of some of the products, which it said was offset partially by a reduction in sales volumes in its base business. The company’s total revenue for the quarter stood at ₹5,320 crore.
Revenue from other CIS countries and Romania market, for the quarter, was ₹240 crore, an 11% year-on-year growth driven by launch of new products, offset partially due to lower volumes in the base business.