Leading pharma player Dr Reddy’s on Tuesday reported a 11% growth in its consolidated net profit at Rs 1,379 crore for the quarter ended December 2023. The same stood at Rs 1,247 crore in the same quarter last year.

The profit was slightly above the ET Now poll estimate of Rs 1,337 crore. Revenue from operations increased 7% year-on-year (YoY) to Rs 7,215 crore.

The revenue growth was primarily driven by market share gains for its existing products in North America and continuation of the growth journey in Europe.

“We delivered another quarter of highest-ever sales and robust financial performance aided by new products performance and base business market share gain in the US,” said G V Prasad, Co-Chairman & MD, Dr Reddy’s.

Segment wise, revenue from the global generics business stood at Rs Rs 6,310 crore, registering a YoY growth of 7%. The growth was driven by increase in volumes of base business, new product launches, partially offset by price erosion in certain markets.

The North America revenue jumped 9% YoY to Rs 3,350 crore due to market share expansion in certain existing key products and revenues from new product launches. During the quarter, the company launched four new products in the region, of which 2 were launched in the US. As of December 2023, the about 79 cumulative generic filings are pending for approval with the USFDA.Revenues from the Europe region increased 15% YoY, primarily on account of contributions from new product launches, improvement in base business volumes, and a favourable currency exchange rate movements.

The domestic India revenues jumped 5% YoY, due to revenues from new product launches. In the emerging markets, revenue declined 2% YoY to Rs 1,280 crore because of unfavorable forex movement.

The company has incurred research and development (R&D) expenses of Rs 560 crore in the third quarter. R&D investments are driven by ongoing clinical trials on differentiated assets, as well as other developmental efforts to build a healthy pipeline of new products across markets for both small molecules and biosimilars.

“We continue to strengthen our core businesses and invest in innovative products including strategic collaboration for novel molecules to meet unmet needs of patients,” said G V Prasad.

On Tuesday, Dr Reddy’s shares closed 0.15% higher at Rs 5,835 on NSE.

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