Dr Reddys Laboratories Ltd

The revenue growth was largely driven by growth in global generics revenues in North America as well as Emerging Markets.

Consolidated profit before tax stood at Rs 1,601.6 crore during the March 2024 quarter, up 20.83% YoY.

EBITDA grew 14.77% to Rs 1,872 crore in Q4 FY24 as against Rs 1,631.1 crore recorded in the corresponding quarter previous year. EBITDA margin improved to 26.4% in Q4 FY24 as against 25.9% posted in Q4 FY23.

Q3 FY24 gross margin stood at 58.6%, up 140 bps YoY, primarily on account of improvement in product mix and productivity cost savings, partially offset by income from non-core brands divested in previous period.

Selling, general & administrative (SG&A) expenses for Q4 FY24 were at Rs 2,047.6 crore, YoY increase of 13.81%, largely on account of higher investments in sales & marketing activities to strengthen our existing brands, new business initiatives including scaling up OTC and consumer health & wellness business, digitalization initiatives and building strong commercial capabilities.

Research & development (R&D) expenses in fourth quarter of FY24 stood at Rs 687.7 crore, 9.7% of revenue. R&D investments are related to our biosimilar products pipeline, development efforts across generics as well as our novel oncology assets.

During the quarter, revenues from Emerging Markets segment stood at Rs 1,209.1 crore, year on year increase of 9%, attributable to new product launches.

Revenues from India market during the quarter stood at Rs 1,126.5 crore, year on year decline of 12%. During the quarter, the company launched 3 new brands in the country, taking the annual total to 13.

Revenues from North America market was at Rs 3,262.6 crore, year on year rise of 29%. The growth was was largely on account of increase in volumes of our base business, contribution from new launches, partly offset by price erosion.

During the quarter, revenue from Europe market was at Rs 520.8 crore, year on year growth of 5%. The growth was primarily on account of improvement in base business volumes, new product launches, partly offset by price erosion.

Revenues from Global Generics (GG) during the quarter grew 13% YoY to Rs 6,119.1 crore, primarily driven by increase in volumes of our base business, new product launches, partially offset by price erosion in certain markets.

Revenues from Pharmaceutical Services and Active Ingredients (PSAI) rose 6% to Rs 821.9 crore in Q4 FY24, mainly driven by revenues from new products, favourable forex, partially offset by price decline.

Free cash-flow for Q4 FY24 stood at Rs 528.9 crore while net cash surplus for the company was at Rs 6,458.6 crore as on 31 March 2024. Capital expenditure for third quarter of FY24 stood at Rs 500 crore.

Commenting on the results, co-chairman & MD, G V Prasad said, Our growth and profitability in FY2024 has been driven by our performance in the US. We have also made significant progress on future growth drivers through licensing, collaboration and pipeline building. We will continue to strengthen our core businesses through superior execution as we invest and build the future growth drivers.

Meanwhile, the board recommended a final dividend of Rs 40 per equity share for the financial year 2023-24. The dividend will be paid on or after five days from the date of declaration of the final dividend by the shareholders.

Further, the pharmaco has informed that Parag Agarwal will retire as the chief financial officer (CFO) of the company effective from 31 July 2024, consequent to his decision to expand his involvement in philanthropy for the cause of making a meaningful difference to the lives of the most vulnerable segment of the society – the voiceless animals. He will also cease to be a member of the management council and senior management personnel from the same date as well.

Lastly, M V Narasimham, currently Deputy CFO of the company is being elevated to the role of the CFO with effect from 1 August 2024. Presently, he is also a member of the management council and senior management personnel of the company.

Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.

The scrip declined 0.66% to close at Rs 6,259.15 on the BSE.

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Net profit of Dr Reddy's Laboratories rose 36.42% to Rs 1309.80 crore in the quarter ended March 2024 as against Rs 960.10 crore during the previous quarter ended March 2023. Sales rose 12.49% to Rs 7083.00 crore in the quarter ended March 2024 as against Rs 6296.80 crore during the previous quarter ended March 2023.

For the full year,net profit rose 23.75% to Rs 5577.90 crore in the year ended March 2024 as against Rs 4507.30 crore during the previous year ended March 2023. Sales rose 13.54% to Rs 27916.40 crore in the year ended March 2024 as against Rs 24587.90 crore during the previous year ended March 2023.

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Dr Reddys Laboratories announced that the 40th Annual General Meeting(AGM) of the company will be held on 29 July 2024.

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Dr Reddys Laboratories announced that the Board of Directors of the Company at its meeting held on 7 May 2024, inter alia, have recommended the final dividend of Rs 40 per equity Share (i.e. 800%) , subject to the approval of the shareholders.

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Oracea is a tetracycline antibiotic. It is used to treat blemishes, bumps, and acne-like lesions caused by rosacea in adults. It works by reducing skin inflammation caused by rosacea.

Doxycycline capsules had estimated annual sales of USD 128 million in the US (IQVIA MAT February 2024).

Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.

The drug major's consolidated net profit increased 10.57% to Rs 1,378.9 crore on 6.57% rise in revenues to Rs 7,214.8 crore in Q3 FY24 over Q3 FY23.

The scrip fell 0.42% to currently trade at Rs 6323.15 on the BSE.

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Dr. Reddy's Laboratories announced its launch of Doxycycline Capsules, 40 mg in the U.S. market, a therapeutic generic equivalent of ORACEA® (doxycycline, USP) Capsules, 40 mg approved by the U.S. Food and Drug Administration (USFDA).

Dr. Reddy's Doxycycline Capsules, 40 mg, are supplied in bottle counts of 30.

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Dr. Reddy's Laboratories announced the roll-out of its condition management programme DailyBloom™ IBS, India's first integrated care plan for Irritable Bowel Syndrome (IBS). The programme is based on extensive research and is enabled by a mobile application developed in-house. DailyBloom™ IBS focuses on a comprehensive care plan that includes diet management, psychological and physical wellness support for patients with IBS. Dr. Reddy's has launched the programme on 'World IBS Day', a day that aims to increase awareness of the IBS condition, discuss misconceptions, challenges and even stigma attached to it.

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Nerivio is a prescription-based non-invasive device intended for acute and prophylactic (preventive) treatment of migraine with or without aura for adults and adolescents aged 12 years and above

The launch marks the company’s entry into digital therapeutics in Europe. Nerivio is approved by the United States Food and Drug Administration (USFDA), and is CE-mark certified in Europe.

The pharmaceutical company will launch the product in South Africa later this month and subsequently in Spain and the UK.

Last year, the company had entered into an exclusive agreement with Theranica, a prescribed digital therapeutics company developing advanced neuromodulation devices for migraine and other pain conditions, for the marketing and distribution of Nerivio in multiple markets.

M.V. Ramana, chief executive officer, Branded Markets (India and Emerging Markets), Dr. Reddy’s, said, At a time when conversations on migraine focus on migraine5 as a women’s health issue, relief from migraine through the use of technology and drug-free solutions, challenges associated with managing migraine during the child-bearing age, and distinguishing migraine from headache, we are happy to take our clinically-proven first digital therapeutics product, Nerivio, to patients in our identified markets.

Nerivio has had an encouraging start in India, with recommendation from neurologists in India and bringing relief to patients living with migraine. We believe this product meets a genuine unmet clinical need among migraine patients, and has the potential to reduce pill burden in migraine.”

Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.

The drug major's consolidated net profit increased 10.57% to Rs 1,378.9 crore on 6.57% rise in revenues to Rs 7,214.8 crore in Q3 FY24 over Q3 FY23.

The scrip fell 0.14% to ends at Rs 6159.40 on Wednesday, 10 April 2024. The domestic market is closed today on account of Ramadan.

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Dr. Reddy's Laboratories announced the launch of the drug-free non-invasive migraine management wearable device Nerivio® in Germany through its step-down subsidiary betapharm. The launch marks the company's entry into digital therapeutics in Europe. Nerivio® is approved by the United States Food and Drug Administration (USFDA), and is CE-mark certified in Europe.

Nerivio® was presented in 2023 by Dr. Reddy's at the DGN Kongress organised by the German Association of Neurology in Berlin, and the 17th European Headache Congress held in Barcelona, Spain. Dr. Reddy's will present and launch Nerivio® during the Neurological Association of South Africa annual congress on April 17, 2024, in the presence of Dr. Stewart Tepper, Professor of Neurology at the Geisel School of Medicine - Dartmouth, and Vice President, New England Institute for Neurology and Headache. In May 2024, Nerivio® will also be presented at International Headache Society 2024 iHEAD meeting in Berlin, Germany. In subsequent months, Dr. Reddy's will launch Nerivio® in Spain and the UK.

Last year, Dr. Reddy's entered into an exclusive agreement with Theranica, a prescribed digital therapeutics company developing advanced neuromodulation devices for migraine and other pain conditions, for the marketing and distribution of Nerivio® in multiple markets.

Dr. Reddy's launched Nerivio® in India in 2023. In India, Nerivio® is supported by Dr. Reddy's unique patient support programme called 'M-Free'. The programme is a comprehensive support system that enhances and streamlines the journey of the patients. M-Free includes services such as onboarding and counseling of patients, device demonstrations, doorstep delivery, flexible payment options, informative content, and dedicated customer care to help patients get the most out of the device. With lifestyle modification as a key recommendation for better management of migraine, M-Free awareness program offers a suite of value-add services such as nutritionist consultation, yoga and meditation sessions with certified specialists for holistic medicine free migraine management.

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In September 2022, Bayer launched the patented drug vericiguat under the brand name Verquvo in India.

Under the terms of this agreement, Bayer has granted non-exclusive rights to Dr. Reddy’s to market the aforementioned drug under the brand name Gantra.

Vericiguat, a soluble guanylate cyclase (sGC) stimulator, in India, is indicated, along with guideline-based medical therapy, in adults with symptomatic chronic heart failure with reduced ejection fraction (less than 45%), following a recent event of worsening heart failure which required hospitalization or outpatient intravenous (IV) diuretics.

Vericiguat works on a pathway not currently targeted by existing heart failure treatments and can reduce the combined risk of cardiovascular death and heart failure hospitalization in such patient.

India has between 8-10 million people with heart failure, making it one of the largest populations with this condition.

Heart failure is a major public health issue affecting more than 8-10 million people in India. The average age of an Indian heart failure patient is a decade younger than their Western counterparts being 55 – 60 years.

Despite the substantially younger age of patients with HF in India, the 5-year mortality rate is 60%. In patients with chronic heart failure, with reduced ejection fraction (less than 45%) an event of worsening heart failure can happen at any stage. 90% of patients who suffer from worsening heart failure are not in the advanced stage of chronic heart failure.

HF remains the commonest cardiac cause of hospitalization in India with worsening heart failure events being one of the most important causes of death in heart failure patients.

M.V. Ramana, chief executive officer, branded markets (India and Emerging Markets), Dr. Reddy’s, said: Strengthening our chronic therapy portfolio in India continues to be a focus area for us. Vericiguat is a first-in-class sGC stimulator indicated for adults with symptomatic, chronic HF and ejection fraction less than 45% following worsening heart failure.

The addition of Vericiguat bolsters our heart failure management portfolio that includes Cidmus, Daplo and beta blockers. The partnership with Bayer is part of Dr. Reddy’s continuous efforts to make innovative medicines available to patients in India through strategic collaborations.

We will use our strengths in marketing and distribution to widen access to this novel treatment in metros and beyond into tier-I and tier-II towns in India.”

Dr Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.

The drug major's consolidated net profit increased 10.57% to Rs 1,378.9 crore on 6.57% rise in revenues to Rs 7,214.8 crore in Q3 FY24 over Q3 FY23.

The scrip had risen 0.55% to end at Rs 6175.10 on the BSE on Friday.

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