Dr Reddy’s Laboratories (DRL), the Hyderabad-based pharmaceutical company, today reported a 14.28 per cent dip in its first-quarter consolidated net profit at Rs 209.6 crore, compared to Rs 244.5 crore in the year-ago quarter.
Revenue was down 7.4 per cent at Rs 1,683.1 crore, against Rs 1,818.9 crore in the previous corresponding quarter.
DRL’s Vice-Chairman and Chief Executive Officer, G V Prasad, attributed the decline in net profit to currency fluctuations and inability to launch new products as planned during the quarter.
“The US District Court of New Jersey granted a preliminary injunction to Sanofi-Aventis, blocking DRL’s proposed launch of the generic version of Allegra D 24,” Prasad said.
With no revenues from Sumatriptan, a generic version of Imitrex used in the treatment of migraine, the company saved on the high rate of interest in North America. Accordingly, profit before tax was Rs 250 crore, while the profit after tax stood at Rs 210 crore. Revenues from North America increased five per cent in dollar terms sans Sumatriptan.
“North America will continue to be the driver for future growth,’’ said K Satish Reddy, chief operating officer.
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The company has received the manufacturing approval for Darbepoetin, its third biosimilar product in India, and expects to commercialise it shortly. “We expect to see a double digit growth in India and Darbepoetin will aid in bettering the industry average,’’ Satish Reddy said.
During the quarter, DRL’s transferred dossiers and trademarks for nine currently marketed products in Brazil to GlaxoSmithKline (GSK) for $4 million (Rs 18.84 crore).
The agreement also provides for additional milestone payments, which would be recognised as revenues over the term of the product supply agreement. Around 70 dossiers would be transferred to GSK during this year.