Dr Reddy's Laboratories' revenues in Q1 grew by 18% to 1,970 cr

HYDERABAD: Pharma major Dr Reddy's Laboratories' revenues in the first quarter grew by 18% to 1,970 crore compared to the corresponding period of the last financial year on successful drug launches in North America and increased volumes in Russia. The company's profits stood at 250 crore, reflecting a 20% growth. But the company's performance in India did not allow for much celebration.

"We expected to perform well in the first quarter as the new launches have increased our market share and the base portfolio in the North American region in the generics segment. Also, our planned investment in Russia to market our OTC drugs has paid off," said Satish Reddy, MD and chief operating officer, Dr Reddy's Laboratories.

The drugs that added wings to the revenues are lansoprazole, tacrolimus, omeprazole Rx and fexofenadine OTC. The strong performance illustrates two things about Dr Reddy's: That the North American market will continue to contribute a majority of revenues to its overall sales and that the company has got its strategy right by ploughing efforts into the OTC market in the USA and Russia.

Sales from North America grew 48% and the company hopes to perform better in the coming quarters.

"The Bristol penicillin facility that we acquired from GSK will launch about three to four products. We have a strong portfolio of products to be launched and certainly, H2 will be better than H1," GV Prasad, vice-chairman and chief operating officer, Dr Reddy's, said, commenting on the company's outlook for the coming quarters. The company's India sales recorded a growth of 6% vis-Ã -vis the industry growth of 14%. Officials blamed intense competitive pricing strategy and weak volume growth in a few key brands. But the biosimilars segment reflected a strong 69% growth in India.

"India's numbers were disappointing and below our estimates. The field force we hired for ramping up sales hasn't performed well. We are looking at ways to reposition our product launches and firming up the sales force," said Satish Reddy.