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Tag: Dr. Reddy

Dr. Reddy’s Q1FY25 Financial Results

Hyderabad, India, July 29, 2024: Dr. Reddy’s Laboratories Ltd. today announced its consolidated financial results for the quarter ended June 30, 2024. The information mentioned in this release is based on consolidated financial statements under International Financial Reporting Standards (IFRS).

Commenting on the results, Co-Chairman & MD, G V Prasad said: “We had a good start to the new fiscal year and our growth & profitability was mainly driven by our generics business. We continue to strengthen our core businesses and have made strategic investments in biologics, consumer healthcare and innovation to drive patient impact and value creation.” Revenues

All amounts in millions, except EPS All US dollar amounts based on convenience translation rate of 1 USD = ₹ 83.33 Dr. Reddy’s Laboratories Limited & Subsidiaries

Key Business Highlights
 Acquired Nicotinell® and related brands in the Nicotine Replacement Therapy category in markets outside the US from Haleon plc for a total consideration of GBP 500 million, with an upfront cash payment of GBP 458 million and performance-based contingent payments of up to GBP 42 million, payable in 2025 and 2026. The transaction is expected to close in early Q4 of calendar year 2024.
 Entered into a joint venture agreement with Nestlé India to bring science-backed nutritional portfolio to more consumers in India. The JV is expected to become operational in Q2FY25.
 Partnered with Novartis Pharma LLC to distribute two of their leading anti-diabetes brands, Galvus® and Galvus Met®, in the Russian retail market.
 Received exclusive rights from Ingenus Pharmaceuticals to commercialize Cyclophosphamide Injection in the US.
 Collaborated with Alvotech for commercialization of their denosumab biosimilar candidate in the US on an exclusive basis, as well as in Europe and UK.
 Launched drug-free migraine management device, Nerivio®, in Germany, Spain, UK and South Africa.
 Inaugurated a 70,000 sq.ft. state-of-the-art Biologics facility of Aurigene Pharmaceutical Services in Genome Valley, Hyderabad, India. The process and analytical development laboratories are operational while the commissioning of manufacturing capacity will be completed in 2024.

 ESG & other Updates
 Only Indian Pharma Company which featured in the 2024 list of Global 500 Most Sustainable Companies by Time Magazine and Statista.
 Named ‘Asia-Pacific Climate Leader’ by Financial Times for the second consecutive year in 2024, scoring the highest amongst Indian Pharma peers.
 Won the ‘Masters of Risk’ award in ‘Healthcare and Pharma’ at the India Risk Management Awards.
 Improved FTSE Russel’s ESG Score from 3.9 to 4.2 out of 5.
 Received a Form 483 with two observations after the USFDA completed a routine GMP inspection at two of our formulations manufacturing facilities in Duvvada, Visakhapatnam.
 Received a Form 483 with four observations after the USFDA completed a GMP inspection at our API manufacturing facility in Srikakulam, Andhra Pradesh.

Revenue Analysis
 Q1FY25 consolidated revenues at ₹ 76.7 billion, YoY growth of 14% and QoQ growth of 8%. The growth was largely driven by growth in global generics revenues in North America as well as India. Global Generics (GG)
 Q1FY25 revenues at ₹ 68.9 billion, YoY growth of 15% and QoQ growth of 13%. YoY growth was primarily volume led, aided by new launches and integration of recently in-licensed vaccine portfolio in India, partially offset by price erosion. Sequential growth was due to change in product mix partly offset with adverse price erosion.

 North America
 Q1FY25 revenues at ₹ 38.5 billion, YoY growth of 20% and QoQ growth of 18%. Our growth was largely on account of increase in volumes of our base business, contribution from new launches, partly offset by price erosion.
 During the quarter, we launched 3 new products in the U.S.
 During the quarter, we filed one new Abbreviated New Drug Application (ANDA) with the U.S. FDA. As of June 30, 2024, 80 generic filings were approvals pending from the U.S. FDA. These comprise of 75 ANDAs and five New Drug Applications (NDAs) filed under the Section 505(b)(2) route of the US Federal Food, Drug, and Cosmetic Act. Of the 75 ANDAs, 45 are Paragraph IV applications, and we believe that 23 of these have the ‘First to File’ status.

Europe
 Q1FY25 revenues at ₹ 5.3 billion, YoY growth of 4% and sequential growth of 1%. Growth was primarily on account of improvement in base business volumes, new product launches, partly offset by price erosion.
o Germany at ₹ 2.8 billion, YoY growth of 14% and QoQ decline of 1%.
o UK at ₹ 1.6 billion, YoY decline of 7% and QoQ growth of 5%.
o Rest of Europe at ₹ 0.9 billion, YoY growth of 1% and flat QoQ.
 During the quarter, we launched 12 new products across various countries in the region. India
 Q1FY25 revenues at ₹ 13.3 billion, YoY growth of 15% and QoQ growth of 18%. YoY growth was mainly on account of new product launches including the recently in-licensed vaccine portfolio. As per IQVIA, our IPM rank was at 10 for the quarter.
 During the quarter, we launched 13 new brands in the country, in addition to exclusive rights to promote and distribute Sanofi’s vaccine brands.

 Emerging Markets
 Q1FY25 revenues at ₹ 11.9 billion, YoY growth of 3% and QoQ decline of 2%. YoY growth is attributable to market share expansion and new product launches, partly offset by unfavorable forex and price erosion.

o Revenues from Russia at ₹ 5.5 billion, YoY decline of 2% and QoQ growth of 11%.
– YoY decline was majorly due to unfavorable currency exchange rate movements, partially offset by price increases and higher base business volumes.
– QoQ growth was driven by increase in base business volumes.
o Revenues from other Commonwealth of Independent States (CIS) countries and Romania at ₹ 1.9 billion, decline of 2% YoY and 11% QoQ.
– YoY decline was primarily on account of decline in base business volumes, partly offset by increase in prices.
– QoQ decline was driven by decline in base business volumes.
o Revenues from Rest of World (RoW) territories at ₹ 4.4 billion, growth of 11% YoY and a decline of 11% QoQ.
– YoY growth was largely attributable to increase in volumes of base business, contribution from new products, partly offset by price erosion.
– QoQ decline was primarily driven by decline in base business volumes and erosion.
 During the quarter, we launched 17 new products across various countries in the region. Pharmaceutical Services and Active Ingredients (PSAI)
 Q1FY25 revenues at ₹ 7.7 billion, with a growth of 14% YoY and a decline of 7% QoQ. YoY growth was mainly driven by improved volumes in base business, and contribution from new products, QoQ decline was driven by decrease in volumes of certain existing products.
 During the quarter, we filed 11 Drug Master Files (DMFs) globally.

Income Statement Highlights:
Gross Margin
 Q1FY25 at 60.4% (GG: 64.7%, PSAI: 23.1%), an increase of 170 basis points (bps) over previous year and 183 bps sequentially. The increase is on account of favourable product mix and overhead leverage, partially offset by price erosion in generics markets.

 Selling, General & Administrative (SG&A) Expenses
 Q1FY25 at ₹ 22.7 billion, YoY increase of 28% and 11% QoQ.
The increase is primarily on account of investment in new business initiatives, higher freight costs, business integration costs, annual merit increases, and building commercial capabilities to enhance operational efficiencies.

 Research & Development (R&D) Expenses
 Q1FY25 at ₹ 6.2 billion. As % to Revenues – Q1FY25: 8.1% | Q1FY24: 7.4% | Q4FY24: 9.7%.
R&D investments is reflecting our biosimilars pipeline, development efforts across generics as well as our novel oncology assets, which will support future growth.

 Other Operating Income
 Q1FY25 at ₹ 0.5 billion as compared to ₹ 0.8 billion in Q1FY24. Net Finance Income
 Q1FY25 at ₹0.8 billion compared to ₹ 0.8 billion in Q1FY24. Profit before Tax
 Q1FY25 at ₹ 18.8 billion, a YoY growth of 2% and a QoQ growth of 18%. As % to Revenues – Q1FY25: 24.5% | Q1FY24: 27.4% | Q4FY24: 22.6%.

 Profit after Tax
 Q1FY25 at ₹ 13.9 billion, a YoY decline of 1% and a QoQ growth of 7%. As % to Revenues – Q1FY25: 18.1% | Q1FY24: 20.8% | Q4FY24: 18.5%.
The Effective Tax Rate (ETR) for the quarter was 26.0% as compared to 24.0% in Q1FY24. Diluted Earnings per Share (EPS)
 Q1FY25 is ₹ 83.5.

Other Highlights:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
 Q1FY25 at ₹ 21.6 billion, YoY growth of 1% and QoQ growth of 15%. As % to Revenues – Q1FY25: 28.2% | Q1FY24: 31.7% | Q4FY24: 26.4%.

Others:
 Operating Working Capital: As on 30th June 2024 at ₹ 115.5 billion.
 Capital Expenditure: Q1FY25 at ₹ 4.9 billion.
 Free Cash Flow: Q1FY25 at ₹ 2.3 billion.
 Net Cash Surplus: As on 30th June 2024 at ₹ 67.3 billion
 Debt to Equity: As on 30th June 2024 is (0.23)
 RoCE: Q1FY25 annualized at 33%.

Dr. Reddy’s enters into exclusive distribution partnership with Sanofi Healthcare India Private Limited for their vaccine brands in India

Hyderabad India; March 28, 2024 – Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY; hereafter referred to as “Dr. Reddy’s”), a global pharmaceutical company, today announced that it has entered into an exclusive partnership with Sanofi Healthcare India Private Limited (“SHIPL”) to promote and distribute their vaccine brands across private markets in India.

Dr. Reddy's- building

 Under the arrangement, Dr. Reddy’s will have exclusive rights to promote and distribute Sanofi’s well- established and trusted paediatric and adult vaccine brands Hexaxim®, Pentaxim®, Tetraxim®, Menactra®, FluQuadri®, Adacel® and Avaxim® 80U. These brands saw combined sales of approx. INR 426 crores (approx. USD 51 million) as per IQVIA MAT February 2024. Sanofi will continue to own, manufacture, and import these brands to the country.

 Preeti Futnani, General Manager India for Vaccines, Sanofi, said, “Vaccine confidence has reached its highest in India in the last few years. Yet, there is much to be done for the rest of the country’s large unvaccinated cohort. To fulfil our long-term commitment to India and expand our geographic reach, we’re pleased to partner with Dr. Reddy’s Laboratories (Dr. Reddy’s) for exclusive distribution and promotion. We’re confident this partnership will further bolster our promise of saving millions of lives against vaccines-preventable diseases with improved vaccination coverage.”

 M.V. Ramana, Chief Executive Officer, Branded Markets (India and Emerging Markets), Dr. Reddy’s, said: “We are happy to have the opportunity to leverage our strengths in promotion and distribution to considerably expand engagement with healthcare professionals and help widen access of Sanofi’s well-established and trusted vaccine brands in India. We continue our efforts to become the partner of choice in bringing novel, innovative and trusted drugs to patients in India through strategic collaborations. The portfolio now gives Dr. Reddy’s a strong presence in the vaccine segment, propelling us to the second position among vaccines players in India. Through each product and partnership, our aim is to serve over 1.5 billion patients by 2030.”