Dr. Reddy's Q4 profit surges 76% boosted by jump in US, European sales

Headline results for the fourth quarter:

Revenues INR  44.3 billion ($585.6 million) +10%
Profit INR 7.6 billion ($100.6 million) +76%

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

What the company said:

GV Prasad, managing director at Dr. Reddy’s Laboratories, remarked that fiscal 2020 "has been a very positive year for the company. Progress made during the year includes [voluntary action initiated] status for [the] CTO 6 [manufacturing plant], healthy product pipeline build up, productivity improvement, and strong financial performance across our businesses."

In regards to the COVID-19 pandemic, the Indian drugmaker stated that "various initiatives have been undertaken to ensure that our manufacturing-related operations continue unabated, enabling us to serve our patients," adding that "a few products related to COVID-19 are under development." In addition, Dr. Reddy's said "we are using digital channels for enabling work from home and reaching out to doctors, customers and vendors."

Other results:

  • Global generics revenue: INR 36.4 billion ($481.7 million), up 20%
    • North America: INR 18.1 billion ($239.5 million), up 21%, lifted by the contribution from new product launches and an increase in volumes for existing products that were higher partially due to COVID-19-related stocking
    • Emerging markets: INR 8 billion ($105.9 million), up 15%, with Russian sales up 8% to INR 3.9 billion ($52 million), while rest of the world territories saw 6% growth at INR 2.3 billion ($30 million)
    • India: INR 6.8 billion ($90 million), up 5%, impacted in part due to "logistics-related disruptions" caused by COVID-19 lockdowns
    • Europe: INR 3.4 billion ($45 million), up 80%
  • Sales from Pharmaceutical Services and Active Ingredients: INR 7.2 billion ($95 million), up 6%
  • Proprietary products: INR 725 million ($10 million), down 76%
  • Full-year revenue: $2.3 billion, up 13%
  • Full-year profit: $259 million, up 4%

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