Dr. Reddy’s Laboratories Ltd. (NYSE:RDY) today announced its unaudited
financial results for the third quarter ended December 31, 2009 under
International Financial Reporting Standards (IFRS).
Key Highlights
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Consolidated revenues at Rs. 17.3 billion ($373 million) in Q3 FY10 as
against Rs. 18.4 billion ($397 million) in Q3 FY09, representing a
decline of 6%. Excluding revenues from sumatriptan in the previous
year, the 17% growth is largely driven by the key markets of India and
Russia in Global Generics and PSAI.
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Consolidated revenues for nine months FY10 at Rs. 53.9 billion
($1.2 billion); YoY growth of 9%.
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EBITDA at Rs. 3.7 billion ($79 million) in Q3 FY10. EBITDA for nine
months FY10 at Rs. 11.8 billion ($255 million) represents a YoY growth
of 31%. Adjusted PBT for the quarter is at Rs. 2.6 billion ($56
million).
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During the quarter, many healthcare insurance providers in Germany
announced their final tender results indicating a higher pace of
transition to the tender based model in the German generics
pharmaceutical market, with an associated significant deterioration in
prices from the previous year’s levels. As a result of this, the
carrying value of betapharm’s goodwill and intangibles were tested for
impairment. A non-cash write-down of intangible assets and ‘beta’
brand amounting to Euro 48 million and a non-cash write-down of
goodwill amounting to Euro 76 million were recorded for the quarter.
The overall net impact on Income Statement was Euro 109 million after
a reversal of deferred tax liability relating to intangibles and
‘beta’ brand.
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Loss for the quarter is at Rs. 5.2 billion ($112 million) while
Adjusted Profits after tax (PAT) for the quarter is at Rs. 2.3 billion
($50 million). Adjusted PAT for nine months of this fiscal is at Rs.
7.3 billion ($158 million) as against adjusted PAT of Rs. 5.1 billion
($110 million) in the same period for previous year, representing a
growth of 43%.
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During the quarter, the company launched 27 new generic products,
filed 16 new product registrations and filed 11 DMFs globally.
Segmental Analysis
Global Generics
Revenues of Global Generics for the nine months at Rs. 37.4 billion
($807 million) represent a growth of 7%. Revenues from Global Generics
business at Rs. 11.7 billion ($253 million) in Q3 FY10 as against Rs.
13.7 billion ($295 million) in Q3 FY09. Excluding the revenues from
sumatriptan the growth is at 16% driven by the key markets of India and
Russia.
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Revenues from North America at Rs. 3.0 billion ($64 million) in Q3
FY10 as against Rs. 6.7 billion ($143 million) in Q3 FY09. Excluding
the revenues from sumatriptan the growth is flat.
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The total cumulative ANDA filings are 141. 62 ANDAs are pending
approval at the USFDA of which 35 are Para IVs and 13 are FTFs.
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Revenues from Europe at Rs. 2.6 billion ($56 million) in Q3 FY10 as
against Rs. 2.5 billion ($54 million) in Q3 FY09, representing a
growth of 3%.
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Revenues from Germany increase by 2% to Rs. 2.0 billion ($44
million) in Q3 FY10.
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Revenues from Rest of Europe grew by 6% to Rs. 534 million ($12
million) in Q3 FY10.
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Revenues from Russia & Other CIS markets at Rs. 2.8 billion ($60
million) in Q3 FY10 as against Rs. 2.0 billion ($43 million) in Q3
FY09, representing a growth of 38%.
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Revenues in Russia at Rs. 2.3 billion ($49 million) in Q3 FY10 as
against Rs. 1.6 billion ($34 million) in Q3 FY09 representing a
YoY growth of 45%.
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The secondary prescription sales trend as per Pharmexpert for
the eight months of April to November compared to same period
last year indicates a dollar growth of 13% for Dr. Reddy’s as
against the industry’s growth of 2%.
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Revenues in Other CIS markets increase by 13% to Rs. 488 million
($11 million) in Q3 FY10 as against Rs. 434 million ($9 million)
in Q3 FY09.
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Revenues in India at Rs. 2.6 billion ($57 million) in Q3 FY10 from Rs.
2.0 billion ($42 million), representing a growth of 34% led by key
brands of Omez, Nise, Stamlo Beta, Reditux & Stamlo.
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The YoY growth of 34%, is largely driven by volume growth of 29%
from existing portfolio and 7% by new product launches.
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The secondary sales trend as per ORG IMS for the eight months
April to November 2009 indicates a growth of 20% for Dr. Reddy’s
as against an industry growth of 16% and the Top 10 Companies
growth of 19%.
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18 new products launched during the quarter. 56 new products
launched in the nine months FY10 contributed 4% to nine months
sales.
Pharmaceutical Services and Active Ingredients (PSAI)