India’s Dr Reddy’s beats Q1 profit view on strong N.America, Russia sales

HYDERABAD (Reuters) -Indian pharma company Dr Reddy’s Laboratories reported a bigger-than-expected 18% rise in first-quarter profit on Wednesday, boosted by strong sales at its mainstay generic drugs business in North America and Russia.

The company’s consolidated profit rose to 14.03 billion rupees ($171.09 million), from 11.88 billion rupees last year.

Analysts, on average, expected a profit of 10.28 billion rupees, according to Refinitiv data.

Dr Reddy’s consolidated revenue jumped 29% to 67.38 billion rupees. Revenue from its generic business in North America, its biggest market in the global generics segment, surged 79% backed by new product launches.

In India, however, revenue from the generic drugs business fell 14%.

Dr Reddy’s launched a total of 25 products in the last financial year, including Lenalidomide, a generic version of cancer drug Remilivid and Sorafenib.

Six new products were launched in the United States, during the quarter, the company said in a statement.

Quarterly revenue was boosted by Lenalidomide sales and revenue growth of 75% in Russia, compared to last year, the company added.

Earlier in the day, its peer Cipla Ltd posted a 45% rise in its first-quarter profit.

Dr Reddy’s shares closed 0.93% higher ahead of results, compared with a 0.66% climb in the Nifty Pharma index.

($1 = 82.0041 Indian rupees)

(Reporting by Rishika Sadam in Hyderabad and Kashish Tandon in Bengaluru; editing by Eileen Soreng)