The Hyderabad-based drug maker on Friday reported its highest ever revenues, largely driven by generic Revlimid launch during the second quarter of FY23, and partly due to favorable movement of forex rates and rebound of Russia business.
The company said generic Revlimid contribution to Dr Reddy’s US sales in the second quarter was in “double digits”. North America, which constitutes largely US sales, contributed Rs 2800 crore or 44% of the company’s sales, which rose 48% YoY.
Dr Reddy’s consolidated revenue from operations grew 9% YoY to Rs 6305.7 crore in Q2FY23, compared to Rs 5763 crore in the year ago period. The company posted a 12% year-on-year (YoY) jump in net profit to Rs 1113 crore during Q2FY23.
The earnings before interest, tax, depreciation and ammortisation (EBITDA) rose 52% YoY to Rs 1932 crore. The EBITDA margins stood at 30.6%.
Erez Israeli, CEO of Dr Reddy’s at the company’s virtual media call on Friday, said he expects generic Revlimid to make meaningful contributions for the next several quarters and has a healthy pipeline of launches in coming quarters.
“We believe that we have a very healthy pipeline (of launches) for North America for many many years ,” Israeli said.
Dr Reddy’s is gearing up to launch more than 25 products in the US market, that includes some good launches.
As on September 30, Dr Reddy’s has 81 generic filings pending for approval with the USFDA, out of which, 42 are Para IVs and 22 have ‘First to File’ status.
Dr Reddy’s introduced generic Revlimid during the second quarter and is eligible for 180 days of generic drug exclusivity for lenalidomide capsules in 2.5-mg and 20-mg strengths.
Sales from Russia saw normalisation with revenues rising by 4% on YoY and 85% on QoQ basis on account of new product launches, increase in sales prices and favorable movement of forex rates, partly offset by reduction
in base volumes. Sales from Russia were impacted in Q1FY23 due to piling up of inventory in trade channels in anticipation of war with Ukraine during Q4FY22.
India which contributed 18% or Rs 1150 crore during Q2FY23 was disappointing for Dr Reddy’s with YoY growth of 1% impacted due to higher base of QlFY22, which included contribution from covid product sales.