Generic formulations is the biggest contributor.
Dr. Reddy’s Laboratories reported a 245% revenue growth, according to its unaudited financial results for Q2 FY07. Revenues for this period, ended September 30, 2006, were $443.71 million compared to $128.67M for the same period of FY06.
A 391% increase to $390.46M in international markets contributed to the company’s significant growth. Revenues from core businesses, excluding the contribution from authorized generics and acquisitions, grew by 42% to $181.92M.
Net income was $62.11M as compared to $19.96M in Q2 FY06. Gross profit margins on total revenues were 41% with an increase to $184.13M in Q2 FY07 from $66.55M in Q2 FY06.
While all of Dr. Reddy’s business segments—APIs, generic formulations, branded formulations in both international markets and in India, and custom pharmaceutical services—achieved an increase, its generic formulations business saw the most significant growth. Revenues in this segment came in at $268.72M in Q2 FY07 compared to $17.14M in Q2 FY06. The company reports that North America contributed 75% and Europe contributed 25%. In North America, the company’s generic versions of Merck’s Zocor® and Proscar® contributed 39% to the total. Revenues from U.K., however, declined to $10.09M in Q2 FY07 from $10.49M in Q2 FY06. The company believes that this is because of a price decrease for amlopidine and omeprazole.
Dr. Reddy reports that revenues in the API business increased by 36% to $64.33M in Q2 FY07. European revenues increased by 59% to $11.89M, primarily led by ramipril and sertraline. Revenues in rest of the world markets increased by 98% to $31.74M, driven by growth in Israel, Turkey, and South Korea. Indian market revenues, however, decreased to $11.13M, or 13%, on account of volume decline in key products. Revenues in North America also decreased by 11% to $9.69M due to decreases from sertraline and ibuprofen partially offset by an increase in sales of development products.
Revenues in Dr. Reddy’s branded formulations business grew by 19% to $68.77M in Q2 FY07, says the company. Revenues from international markets increased by 23% to $28.83M, propelled by growth in Russia, Uzbekistan, Romania, and Venezuela. Central and Eastern Europe saw a growth of 96% to reach $2.21M. Revenues from India increased by 16% to $37.71M due to growth in Omez, Nise, and Reclimet. Revenues in rest of the world markets increased by 33% to $5.05M.
Revenues from CPS increased to $37.00M in Q2 FY07 from $2.7M in Q2 FY06. Revenues in the critical care and biotechnology segment came in at $5.03M, an increase of 12%. The company’s acquisitions in Mexico and Germany contributed 20% to total revenues in Q2 FY07.