Dr Reddy's of India sees revenues grow 25% and earnings rocket in fiscal third quarter

India's Dr Reddy's Laboratories has seen revenues for its third fiscal quarter ended December 31, 2005, leap 25% to 5.9 billion rupees ($134.0 million), driven by increased sales of active pharmaceutical ingredients and branded finished dosage form drugs. Net profit leapt to 628.0 million rupees from 40.0 million rupees in the like, year-earlier period. Excluding a one-time, 388.90 million rupee, gain from the sale of the company's formulations plant in Goa, pretax profit for the reporting period would have been 528.0 million rupees versus 11.0 million rupees in the corresponding year-ago quarter.

APR revenues increased 48% to 2.1 billion rupees, with turnover in India up 50% at 601.0 million rupees and 47% higher at 1.5 billion rupees elsewhere. Sales from Europe rose 78% to 384.0 million rupees, driven primarily by montelukast, terbinafine and omeprazole pellets. Income from North America declined 6% to 379.0 million rupees, due mainly to a downturn in turnover of ranitidine which was partially offset by higher sales of naproxen and sertraline.

Generic finished dosage products generated 831.0 million rupees turnover compared with 966.0 million rupees in the like, year-earlier period, with Europe contributing 42% and North America 58%. Sales in Europe increased 10% to 347.0 million rupees, boosted by omeprazole and amlodipine maleate, and those in North America fell to 480.0 million rupees from 648.0 million rupees, as pricing pressure in the US generics market continued in the third quarter for fluoxetine, the company noted. During the reporting period, Dr Reddy's introduced generic glimepiride in the USA, which contributed revenues of 66.0 million rupees.