Dr Reddys

The company did much better than what most analysts expected for Q2FY13, running high on robust business from USA. Its revenue from USA  showed a YoY growth of 47% at Rs.930 crore. It launched 4 new products during Q2 and 30 products from the prescription portfolio are ranked among the Top 3 in their respective market shares. It filed for 4 ANDAs  and cumulatively, 63 ANDAs are pending for approval with the USFDA of which 33 are Para IVs and 7 have ‘First To File’ status. Russia and Other CIS markets grew 14%, India grew 12% and Europe decline 125, led by Germany, which declined 11%. Though the news today, of the company being sued by Bristol-Myers Squibb Company for patent infringement of cancer drug Ixempra, created a cloud over the company, Dr.Reddy’s Lab does not seem too perturbed and said that this was “routine”. That explains why the market is also not too concerned and the stock is in the green.

Its consolidated revenues for Q2 FY13, YoY was up 27% at Rs.2880 crore. EBITDA rose 47% and PAT was up 32% at Rs.410 crore. During the quarter, the company launched 18 new generic products, filed 11 new product registrations and filed 10 DMFs globally. The profit would have been much higher but for the non-recurring and non-cash impairment charge of Rs.69 crore pertaining to product intangibles in generics portfolio and a goodwill charge wrt Italian operations.  At end of Q2FY13, Cash and cash equivalents stood at Rs.2064 crore. A good stock for the ideal portfolio.