Dr. Reddy’s reported rise in revenues to Rs.540 crore as against Rs.490 crore in Q2 FY03, with a growth of 9 per cent. Net income is at Rs.92.90 crore this quarter as against Rs. 92.60 crore in the same quarter of previous fiscal.

Revenues outside India had been Rs.320 crore as against Rs.30 crore in Q2 FY03.

Revenues in Europe reached Rs.81.6 crore as against Rs.29.9 crore in Q2 FY03; YoY growth of 173 per cent. This growth is due to the launch of Ramipril in Europe API segment and performance of generic Omeprazole in UK. Revenues from the US generics segment increased by 14 per cent to Rs. 99.3 crore as against Rs. 86.8 crore in Q2 FY03, driven by the performance of Fluoxetine and Ibuprofen. In the Indian formulations segment, the top 10 brands, with the exception of Ciprolet, collectively grew by 22 per cent over Q2 FY03. Gross profit for the quarter increased by 11 per cent.

Revenues in the generics segment rose to Rs.120 crore as against Rs. 10 crore in Q2 FY03. North America contributed 80 per cent to the total revenues while Europe contributed the balance. Revenues in Europe were at Rs.24.4 crore as against Rs. 14.6 crore in Q2 FY03, representing a growth of 67 per cent.

This growth was primarily driven by the performance of Omeprazole, which contributed Rs. 8.9 crore in revenues. New product launches include Nefazodone in the US and Simvastatin in UK. During the quarter, the Company filed 4 ANDAs including 3 Para IV certifications, taking the total ANDAs pending at the USFDA to 27.

Revenues in the critical care & biotechnology segment declined to Rs.8.9 crore as against Rs.11.3 crore in Q2 FY03. The decline has been primarily on account of the closure of diagnostic operations in Q1 FY04. Revenues in the Custom Chemical Services segment increased to Rs.2.8 crore as against Rs. 1.7 crore in Q2 FY03.

R&D expenditure rose to Rs. 49 crore as against Rs 38 crore in FY03. R&D expenditure is at 9.1% of total revenues as against 7.7 per cent in Q2 FY03. The increase in R&D expenditure is primarily due to an increase in the number of projects in the areas of Generics and Specialty and higher development activity in APIs.