Boosted by strong US sales of its generic version of the popular cancer drug Revlimid, Dr Reddy's Laboratories reported a bigger-than-expected rise in second-quarter profit on Friday.
Beating analysts' average estimate of Rs 1,269 crore, as per LSEG data, the company's consolidated net profit after tax rose 33% to Rs 1,482 crore ($178 million) in the quarter ended September 30.
Led by a 9% growth in the key global generics segment, consolidated quarterly revenue rose 9% to 69.03 billion rupees. Furthermore, North America business, which is the largest contributor to this segment, grew by 13%. Also to les in India and Europe markets also rose 3% and 26%, respectively.
Generic drugs, complex biosimilars, and active pharmaceutical ingredients have been the forte of this Hyderabad-based company's portfolio. It also launched Lenalidomide capsules which are a generic version of Bristol Myers Squibb's popular cancer drug Revlimid, last year.
A subsidiary of Dr Reddy's, Dr Reddy's Laboratories Inc, is named as a defendant in a district court in the U.S. This subsidiary faces allegations of improperly restraining competition while also having to maintain a shared monopoly in the sale of brand and generic Revlimid.
Boosted by strength in its key domestic and North American business, including those of Revlimid, has helped boost Cipla's profit during the quarter. Rival Cipla reported a bigger-than-expected rise in second-quarter profit, earlier on Friday.
Ahead of results on Friday, Shares of Dr. Reddy's settled 0.5% down at Rs 5,397.30. And if we compare with a 12% climb in the Nifty Pharma index, they rose 8.3% during the September quarter.