Dr Reddy's Labs gains as market share of key drugs rises in US

Dr Reddy's Laboratories rose 1.56% to Rs 2,868.50 at 11:03 IST on BSE after a filing with the US Securities and Exchange Commission on Monday, 18 August 2014, showed market share gained in key drugs in the US market.

Meanwhile, the BSE Sensex was down 68.67 points, or 0.26%, to 26,352.

On BSE, so far 7,239 shares were traded in the counter, compared with an average volume of 27,762 shares in the past one quarter.

The stock hit a high of Rs 2,870.60 and a low of Rs 2,829 so far during the day. The stock hit a record high of Rs 2,939.80 on 28 February 2014. The stock hit a 52-week low of Rs 2,025 on 21 August 2013.

The stock had outperformed the market over the past one month till 19 August 2014, rising 6.81% compared with 3.04% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 23.71% as against Sensex's 8.45% rise.

The large-cap company has an equity capital of Rs 85.17 crore. Face value per share is Rs 5.

Dr Reddys Laboratories said global generics segment's revenues from North America (the United States and Canada) rose 51% to Rs 1646.80 crore in the three months ended 30 June 2014 over the three months ended 30 June 2013.

In US dollar absolute currency terms (i.e., US dollars without taking into account the effect of currency exchange rates), such revenues increased by 43% in the three months ended 30 June 2014 as compared to the three months ended 30 June 2013.

This growth was largely attributable to revenues from new products launched between 1 July 2013 and 30 June 2014, such as decitabine, azacitidine and divalproex sodium ER; and gain in market shares of existing products, such as metoprolol succinate, fexofenadine, atorvastatin and ziprasidone.

The company said its global generics segment's revenues from Russia for the three months ended 30 June 2014 were Rs 419.80 crore, an increase of 15% as compared to the three months ended 30 June 2013.

The company's global generics segment's revenues from 'Rest of the World' markets were Rs 221.60 crore for the three months ended 30 June 2014, an increase of 50% as compared to the three months ended 30 June 2013. The growth was primarily attributable to sales volume growth in Venezuela and new products launched between 1 July 2013 and 30 June 2014.

The company's global generics segment's revenues from Europe were Rs 145.90 crore for the three months ended 30 June 2014, a decline of 7% as compared to the three months ended 30 June 2013. Revenues have declined primarily on account of reduced sales in Germany, which was mainly due to the company's reduced participation in the competitive bidding tenders sponsored by statutory health insurance funds and other health insurance providers.

On a consolidated basis, Dr Reddy's Laboratories' net profit surged 52.49% to Rs 550.39 crore on 23.6% growth in net sales to Rs 3517.54 crore in Q1 June 2014 over Q1 June 2013.

Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including active pharmaceutical ingredients (APIs), custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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