Dr Reddys Labs PAT down by 13 percent to Rs 579.3 crore, gears up to launch 2 COVID drugs next month
The company has geared up to launch two anti-viral drugs Remdesivir and Favipiravir - for the treatment of COVID-19 next month.
Hyderabad: The consolidated profit of Dr Reddys Laboratories Ltd after tax for the quarter ended June 30 was down by 13 per cent to Rs 579.3 crore against Rs 662.8 crore during the same quarter in financial year ''20, a senior official of the drug-maker said on Wednesday.
President, CFO and global head of HR of Dr Reddys, Saumen Chakraborty, in a press conference, said revenue for the quarter under discussion was up by 15 per cent to Rs 4,417.5 crore against Rs 3,843.5 crore in Q1 of last fiscal, he said.
He said the dip in PAT during the first quarter was due to the one-off income of Rs 346 crore that was booked on account of settlement with US-based biotechnology firm Celgene in the Q1 of FY ''19.
The company has geared up to launch two anti-viral drugs Remdesivir and Favipiravir - for the treatment of COVID-19 next month.
Dr Reddy''s had, on June 13, announced that it has entered into a non-exclusive licensing agreement with Gilead Sciences Inc that would grant the city-based drug-maker right to register, manufacture and sell Gileads investigational drug, Remdesivir, a potential treatment for COVIDd-19, in 127 countries, including India.
Similarly, the company partnered with Tokyo-based Fujifilm Corporation and Global Response Aid for the development, manufacture and sales of Avigan Tablets (Favipiravir), a potential treatment of COVID-19.
We are preparing ourselves for the launch. And along with the approval we expect to launch next month (August), he told reporters.
A senior official of the company said Dr Reddys is planning to export the Remdesivir to emerging and Asian markets once the product and approvals are in place.
Revenues from India declined by 10 per cent during the April-June quarter to Rs 630 crore on account of lower sales volume due to lower prescriptions generated and fall in patient footfalls in pharmacies and clinics due to COVID-19, Chakraborty said.
The company completed the acquisition of select business from Wockhardt, including the manufacturing plant located in Baddi, Himachal Pradesh, in the quarter, he said.
The revenues from global generics stood at Rs. 3,507 crore a year on year (YoY) growth of six per cent driven primarily by Europe and the emerging market.
The pharmaceutical services and active ingredients (PSAI) segment revenues were up 88 per cent to Rs 855.3 crore against Rs 454 crore in Q1 of FY ''20.
Revenues from Europe grew by 48 per cent at Rs 360 crore on account of new product launches and volume traction across markets.
The drug- maker spent Rs 400 crore on research and development in the first quarter.
Commenting on the results, co-chairman and MD G V Prasad, in a press release, said, "The current quarter''s financial performance has been strong across all parameters. I am glad that we have been able to serve our patients well and ensured continuity of business operations despite the challenging times."
According to him, the city-based drug-maker started integration of the acquired business from Wockhardt and executed two important licensing arrangements for treatment options for COVID-19 and currently, the company is working towards bringing both these drugs to multiple markets.
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