Profit Dr. Reddy’s down 36% in Q2, plans to relaunch semaglutide in November | Today’s news
Mumbai: Dr Reddy’s Laboratories on Friday reported its results for the September quarter, with profit down 36% year-on-year to ₹925 crore and consolidated sales were down 1.5% year-on-year. ₹8,671 crores. The growth was primarily driven by lower sales of the blood cancer drug lenalidomide (Revlimid) in North America, the company said.
The core business (excluding lenalidomide in North America) continued to deliver double-digit growth across businesses excluding Europe and the API business, the company said.
The company’s Ebitda was ₹1,783 crore for the quarter with a margin of 20.6%.
Dr Reddy had a network cash surplus ₹2,502 crore during the quarter.
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It was informed by its largest geography, North America ₹Revenue 2,489 million, down 23% YoY due to loss of lenalidomide. However, its core business grew at double digits, helped by new product launches, volume expansion and favorable exchange rates currency fluctuations, the company said. North America accounted for 29% of total revenue.
Emerging markets, which accounted for 24% of total sales, reported a 24% year-over-year increase in sales. ₹2,059 crore, driven by the new product triggers across geographies and favorable forex movements.
Its business in India continued to grow in double digits, outperforming the broader Indian pharmaceutical market. She reported income of ₹1,851 million, up 17% year-on-year. New launches, acquired portfolios, price increases and volume growth contributed to market growth, which contributed 21% of total revenues.
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The company’s net income improved significantly quarter-over-quarter, up 109% quarter-over-quarter as the impact of its semaglutide API issue faded. In Q1FY27, the company adopted a ₹240 million crowns for inventory and other costs related to the issue.
Restarting semaglutide
During the last quarter, some batches of the active pharmaceutical ingredient (API) semaglutide were found to be out of specification and the company temporarily suspended commercial supplies. According to management, it is on track to relaunch in November.
“We are well on our way to resolving the issues associated with the semaglutide API. We are now doing dosage formulations and based on current progress we will relaunch the molecule most likely in November,” CFO MV Narasimham said on Friday evening.
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Dr Reddy’s has so far secured approval for generic semaglutide in eight emerging markets in Latin America, Africa and the Middle East. And that’s apart from Canada and India, where it has already launched the product.
During the quarter, the company partnered with Takeda for the dengue vaccine QDenga, which it plans to launch in the next fiscal year. It also expanded its collaboration with Gilead Sciences on the once-a-year investigational lenacapavir for HIV prevention in 120 countries and secured the U.S. FDA approval for biosimilar rituximab – a targeted immunotherapy to treat some types of blood cancer and autoimmune disorders. It launched the biosimilar nivolumab, used to treat various types of cancer, on the domestic market.
The firm announced its results after the market closed. Its stock price closed 0.77% lower on the National Stock Exchange ₹1,229.50 each.
