Dr Reddy's Laboratories (DRL), the second largest pharma company in India, has suffered major setback during the year ended March 2009 on account of one time cash charges in respect of betapharm, its subsidiary in Germany. The company's consolidated net loss mounted to Rs 516.80 crore for year as against a net profit of Rs 383.60 crore in the previous year. The company has written down an amount of Rs 316.70 crore (Rs 301.1 crore in the previous year) for intangible assets and Rs 1,086 crore (Rs 9 crore) for goodwill during 2008-09. The company incurred a forex loss of Rs 63.40 crore as compared to gain of Rs 73.90 crore.
DRL's earning before interest, depreciation, taxation and adjustments, however, went up sharply by 50 per cent to Rs 1,450 crore from Rs 970 crore in the previous year. The company declared equity dividend of 125 per cent for the year 2008-09.
The company's consolidated net sales increased by 38.9 per cent to Rs 6,944 crore from Rs 5,001 crore in the previous year. The growth was driven by launch of the authorized generic version of GSK's imitrex (generic version of sumatriptan succinate), in late November 2008 and by the key markets of North America and Russia. Its revenue from North America increased to Rs 1980 crore from Rs 800 crore and that in Europe increased to Rs 1190 crore from Rs 1020 crore. Revenues from betapharm increased by 20 per cent to Rs 990 crore from Rs 820 crore in the previous year.
The company's sales in Russia and other CIS markets went up to Rs 760 crore from Rs 550 crore, a growth of 38.2 per cent. Its revenues in India improved only by 5 per cent to Rs 850 crore from Rs 810 crore. The company launched 36 new products in India during 2008-09.
Its sales from generic increased to Rs 4,980 crore as against Rs 3300 crore in the previous year, a growth of 50.9 per cent. Revenues from pharmaceutical services and active ingredients went up by 13 per cent to Rs 1,880 crore from Rs 1,660 crore in the last year.
During 2008-09, DRL filed 20 ANDAs taking the total filings to 144. Total of 69 ANDAs pending at the US FDA addressing innovator sales of $46 billion as per IMS December 2008. Its R&D expenditure increased by 14 per cent to Rs 403 crore from Rs 353 crore.