Generic Revlimid pays off: Dr Reddy's PAT up 12 pc at Rs 1,113 cr in Q2

Hyderabad, Oct 28 (PTI) Dr Reddy's Laboratories Ltd on Friday said its consolidated profit after tax (PAT) for the quarter ended September 30, 2022 was up by 12 per cent at Rs 1,112.80 crore as against Rs 992 crore in the same quarter a year ago.

Revenues during the quarter under discussion were up by nine per cent to Rs 6,305.70 crore compared to Rs 5,763.20 crore in the first quarter of FY '22, Dr Reddy’s Chief Financial officer Parag Agarwal said in a press conference.

He said the quarter witnessed highest ever sales and profits backed by new launches in USA, among other reasons.

The company launched generic Revlimid (Lenalidomide) capsules in the US market during the quarter. With this volume-limited launch, Dr Reddy's is eligible for first-to-market, 180 days of generic drug exclusivity for the drug in 2.5 mg and 20 mg strengths.

"There are two major drivers. One is the favourable product mix. Of course that includes the new product launches including Revlimid generic. The second reason is good cost control. These are the two key drivers for the margin improvement," he said replying to a query.

Revenues from Global generics stood at Rs 5,594.60 crore during the quarter, up 18 per cent compared to the same quarter last fiscal.

Pharmaceutical Services and Active Ingredients (PSAI) business was down 23 per cent at Rs 643.4 crore. It was Rs 837.2 crore in the second quarter of FY22.

Revenues from North America witnessed 48 per cent growth at Rs 2,800 crore driven by launch and scale up of new products and favorable movement of forex rates, which was partly offset by price erosion in some of the key molecules.

India sales grew by one per cent at Rs 1,150 crore due to higher base of Q1 FY22, which included contribution from Covid product sales.

Agarwal said the company is on track of launching over 25 new products in FY23.

Commenting on the results, Co-Chairman and MD, G V Prasad said, "We are pleased with the strong financial performance in the current quarter, driven by the launch of Lenalidomide capsules in the US market. Our focus is to build a robust pipeline with products that improve affordability and access to patients globally. We continue to progress well in our productivity, innovation and sustainability agenda." Dr Reddy's spent Rs 490 crore during the second quarter on research and development activities. PTI GDK KH KH