Dr. Reddy's Laboratories
) reported first quarter fiscal 2014 earnings per American
Depositary Share (ADS) of 40 cents, below the Zacks Consensus
Estimate of 44 cents, but above the year-ago earnings of 30 cents
The company reported revenues of $478 million during the
quarter, reflecting year-over-year increase of 12%. Revenues
during the quarter were, however, well below the Zacks Consensus
Estimate of $551 million.
Dr. Reddy's launched 23 new generic products, filed 12
registrations for new products and also filed 5 drug master files
(DMFs) globally in the first quarter.
Quarter in Detail
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 15% to $368 million. Strong sales in
North America and emerging markets led to the growth at the
Global Generics division.
Generics revenues increased in North America (up 37%), Russia
and other CIS (Commonwealth of Independent States) markets (up
8%), and the rest of the world, or RoW (up 12%) while it was flat
in India and down 28% in Europe. Revenues in India were affected
by trade strike in Maharashtra and the new pricing policy which
led to lower inventory levels.
PSAI revenues climbed 6% to $99 million during the quarter.
The slight growth in this segment was due to a fewer number of
new product launches. Revenues in the Proprietary Products and
Others segment declined 16% to $11 million during the
Selling, general and administration (SG&A) expenses
including amortization amounted to $148 million, reflecting an
increase of 6% year over year. The increase was due to normal
salary increments and rupee depreciation against many currencies.
Research and development (R&D) expenses increased 55% to $41
million driven by planned R&D activities.
During the quarter, Dr. Reddy's launched 2 new products -
generic versions of
) Reclast and
) Lamictal XR. Dr. Reddy's also filed 2 abbreviated new drug
applications (ANDAs) with the U.S. Food and Drug Administration
(FDA). The company has 64 ANDAs pending approval with the FDA, of
which 38 are Para IV filings and 8 are first-to-file.
Dr. Reddy's carries a Zacks Rank #3 (Hold).
) currently looks well positioned with a Zacks Rank #2
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