Indian drugmaker Dr Reddy’s Laboratories has posted a strong set of financials which show that net profit tripled and revenues climbed over 160% for its fiscal third quarter ended December 30.
The Hyderabad-based firm said that net income for the quarter rose to 1.88 billion rupees ($42.5 million) from 628 million rupees a year ago while revenues leapt to 15.4 billion rupees from 5.9 billion rupees. Growth was driven by strong sales of Dr Reddy’s generics in the USA which increased to 4.63 billion rupees from 480 million rupees in the like, year-earlier period, boosted by revenues from the firm’s versions of the cholesterol-lowerer simvastatin, the prostate cancer drug finasteride, the allergy treatment fexofenadine and its recently-launched oncology treatment ondansetron.
Revenues from Betapharm, the German company it acquired a year ago, rose 4.3% to 2.66 billion rupees, a solid performance given the tough healthcare reforms and competition in that country.
Dr Reddy’s chief executive GV Prasad said that fiscal 2007 up to now “has been a truly extraordinary year” for the firm and noted that for the first time in the history of the company, it has passed the $1 billion revenues mark. He added that Dr Reddy's has now grown into a vertically-integrated global company “with activities spanning the entire pharmaceutical value chain."
Ranbaxy also impresses
Meantime, fellow Indian firm Ranbaxy has also posted an impressive set of figures for its fourth quarter ended December 30 which showed a 167% earnings increase to 1.86 billion rupees. Revenues were up 22% to 17.01 billion, driven by growth in the USA, but continuing pricing pressures in the UK generic market, and healthcare reforms in France and Germany led to a 4% drop in turnover from Europe.
Malvinder Singh, Ranbaxy’s chief executive, said that “revenues from expanded market reach, new product flow, and acquisitions have kicked in,” while its focus on streamlining costs and underlying organisational structures “is leading to greater efficiencies, very much in tune with the dynamics of a fast changing global market place.”