Dr. Reddy's Laboratories
) reported fourth quarter fiscal 2013 earnings per American
Depositary Share (ADS) of 60 cents above the year-ago earnings of
40 cents per ADS.
The company reported revenues of $613 million during the
quarter, reflecting a year-over-year increase of 26%. Revenues
during the quarter were, however, well below the Zacks Consensus
Estimate of $636 million.
For fiscal year 2013, Dr. Reddy's earnings were $1.80 per ADS,
up 17% year over year but below the Zacks Consensus Estimate of
$1.90. Revenues for fiscal year 2013 were $2.1 billion, up 20%
year over year but nominally below the Zacks Consensus Estimate
of $2.2 billion.
Dr. Reddy's launched 18 new generic products, filed 14
registrations for new products and also filed 17 drug master
files (DMFs) globally in the fourth quarter.
2013 in Details
Dr. Reddy's reports revenues under three segments - Global
Generics, Pharmaceutical Services & Active Ingredients (PSAI)
and Proprietary Products and Others. Revenues at the Global
Generics segment were up 17.5% to $1.5 billion. Strong sales in
North America and emerging markets were primarily responsible for
the growth displayed by the Global Generics division.
Generics revenue increased in North America (up 19%), Russia (up
27%), other CIS (Commonwealth of Independent States) markets (up
28%), India (up 13%) and the rest of the world/RoW (up 42%).
PSAI revenues climbed 28.8% to $563 million during the year.
Revenues in the Proprietary Products and Others segment climbed
12.2% to $55 million during the year. Dr. Reddy's expects
continued growth in this segment on the back of new product
launches and new contracts.
Selling, general and administration (SG&A) expenses including
amortization amounted to $616 million, reflecting an increase of
16.4%. The increase was due to normal salary increments, rupee
depreciation against dollar and Octoplus acquisition expenses.
Research and development (R&D) expenses increased 30.6% to
$141 million driven by planned R&D activities.
During the fiscal year, Dr. Reddy's launched 14 new products and
filed 18 abbreviated new drug applications (ANDAs) and 1 new drug
applications (NDA) with the US Food and Drug Administration
(FDA). The company has 65 ANDAs pending approval with the FDA, of
which 38 are Para IV filings and 8 are first-to-file.
The stock carries a Zacks Rank #3 (Hold). Other generic
players also carry Zacks Rank #3. Currently, companies in the
pharma space like
Jazz Pharmaceuticals plc
Catalyst Pharmaceutical Partners Inc.
) look more attractive with a Zacks Rank #1 (Strong Buy).
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