Dr Reddy’s Laboratories, a second largest Indian pharma company after Sun Pharmaceuticals, has registered poor performance during the third quarter ended December 2016 on account of action taken by US FDA regarding quality. The company’s consolidated net profit declined by 16 per cent to Rs.492 crore from Rs.586 crore in the corresponding period of last year. EBDITA also declined by 13.4 per cent to Rs.905 crore from Rs.1,045 crore. With fall in net profit, EPS move down to Rs.29.72 from Rs.34.34 in the last period. Its R&D expenditure increased by 21 per cent to Rs.496 crore from Rs.410 crore.
Its consolidated net sales declined by 6.6 per cent to Rs.3,653 crore from Rs.3,910 crore. The sales of global generic segment declined to Rs.3,071 crore from Rs.3,088 crore, de-growth of 0.6 per cent. The sales of pharmaceutical services & a ingredients (PSAI) declined sharply by 23.3 per cent to Rs.700 crore from Rs.913 crore and that of proprietary product sales declined by 7.7 per cent to Rs.60 crore from Rs.65 crore.
The sales of global generic segment in US declined by 14.5 per cent during the quarter under review to Rs.1,660 crore from Rs.1,942 crore in the similar quarter of last year and that in Europe increased by 10.8 per cent to Rs.215 crore from Rs.194 crore. The generic sales in domestic market increased marginally by 2.4 per cent to Rs.595 crore. However, the sales off generic in emerging markets declined by 7 per cent to Rs.595 crore.
G V Prasad, co-chairman and chief executive officer, said, “Our performance in Q3 has delivered modest sequential revenue growth of 3 per cent over the previous quarter. Our EBITDA has improved significantly from the last quarter on the back of enhanced emphasis on operational efficiencies and controlling of SG&A costs across our business”.
For the nine months period ended December 2016, DRL’s consolidated net sales declined by 10.2 per cent to Rs.10,368 crore from Rs.11,552 crore in the same period of last year. The income from licensing fees amount to Rs.159 crore as against Rs.162 crore. Its net profit dwindled by 52.4 per cent to Rs.955 crore from Rs.2008 crore. EPS worked out to Rs.57.18 as compared to Rs.117.75 in the last period. The sales of global generic declined by 11.1 per cent to Rs.8,657 crore from Rs.9,743 crore and that of PASI also declined marginally to Rs.2,086 crore from Rs.2,092 crore.
The company launched 5 new products viz., aripiprazole, lamotrigine ODT, fluoxefine tabs, raloxifene HCI and nystatien – triamcinolone cream. Cummulatively 92 generic filings are pending for approval with US FDA which includes 7 ANDAs, acquired from Teva.