Dr Reddy's Laboratories' Q4 consolidated net profit jump 44% at Rs 434 cr; revenue up 14%

Hyderabad: Dr Reddy’s Laboratories Limiteds consolidated profit after tax for the quarter-ended 31 March, 2019 was up by 44 percent at Rs 434.4 crore against Rs 302.2 crore in the third quarter of FY 18, a senior official of the city-based drug maker said on Friday. President, CFO and global head (HR) of Dr Reddys Saumen Chakraborty in a press conference said the revenue for the quarter under discussion was up by 14 percent at Rs 4,017 crore against Rs 3,535 crore in the same quarter last fiscal. During the last quarter, the company entered into an agreement with Encore Dermatology, Inc. for sale and assignment of US rights relating to three of its dermatology brands. He said the company launched about 20 products during the last fiscal and expects to launch equal or more during the current fiscal. “Some of the new launches will be the key driver of growth this year in the USA,” he further said.

Revenues from global generics segment in the Q4 was reported at Rs 3,038 crore a year-on-year growth of nine percent over the same quarter last year, primarily driven by contributions from emerging markets and Europe, he said. Those from North America grew by three percent to Rs 1,496 crore against Rs 1,449 crore in Q4 of FY18. The revenues from India during the Q4 was at Rs 650 crore. Those from pharmaceutical services and active pharma ingredients was at Rs 676.50 crore in the fourth quarter with eight percent growth over the Q4 of FY 18, the official said. For FY 19, PAT stood at Rs 1,880 crore while revenue was 15,385 crore. Chakraborty said research and development (R&D) expenses were at Rs 1,560 crore in FY 19. The CEO and co-chairman of the company GV Prasad said FY19 has been a good year with a significant turnaround in the financial performance and steady progress on the quality front. Replying to a query, he said the Indivior Plc which tried to block Dr Reddys launch of generic suboxone in the USA through legal battle posted a bond of $72 million to cover Dr Reddy’s potential claim of lost profit while the injunction was contested in the US courts. Dr Reddy’s relaunched its buprenorphine and naloxone sublingual film, the generic version of suboxone in the USA market in February 2019 at risk. Indivior unsuccessfully contested in courts on the launch of Dr Reddy’s drug. The matter is still pending in court. Prasad said they would ask more than $72 million if the final verdict comes in their favour.