Dr. Reddy's Q1 revenue, profit up bolstered by higher generics sales; Erez Israeli to become next CEO

Headline results for the first quarter:

Revenue

INR 38.4 billion ($558 million)

+3%

Profit

INR 6.6 billion ($96 million)

+45%

Note: All changes are versus the prior-year period unless otherwise stated

What the company said:

CEO GV Prasad stated "this quarter, we grew in most of our key markets and hope to continue this momentum with a sharper focus on performance," adding "we will continue our journey of operational excellence, cost leadership and innovation across our businesses." Chief financial officer Saumen Chakraborty noted that the profit included INR 3.43 billion ($50 million) received following a settlement with Celgene related to sales of a generic version of Revlimid in Canada.

Dr. Reddy's Laboratories also said that as of August 1, Erez Israeli, who currently serves as chief operating officer, will assume the role of CEO, whilePrasad will continue as the company's co-chairman and managing director. Israeli joined Dr. Reddy's in April 2018 following the retirement of former chief operating officer Abhijit Mukherjee.

"[Israeli] has spear-headed the transformation agenda of the organisation by ensuring clear strategic focus [and] effective cost management, setting foundations for sustainable performance and driving growth," Dr Reddy's stated, adding that "his appointment as a CEO will help to propel the organisation's growth agenda forward." 

Other results:

  • Global generics revenue: INR 33 billion ($480 million), +8%
    • North American generics revenue: INR 16.3 billion ($237 million), +3%, fuelled by new products, including daptomycin, testosterone gel and tobramycin, as well as increased volumes, partly offset by price erosion and adverse currency effects
    • Generics sales in emerging markets: INR 7.3 billion ($106 million), +10%, including 27% growth in the rest-of-world territories, including 5% year-on-year growth in Russia, driven mainly by new products, traction in new markets and volume traction in the base business
    • Generics sales in India: INR 7 billion ($102 million), +15%, fuelled by volume traction, improved realisations in the base business and new product launches
    • European generics revenue: INR 2.4 billion ($35 million), +19%, mainly driven by new products and volume traction on account of improvement in supplies
  • Sales from Pharmaceutical Services and Active Ingredients: INR 4.5 billion ($65 million), -16%

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