Celgene push; Dr Reddys Q1 PAT up 45% at Rs 663 Cr

: Dr Reddys Laboratories Limiteds Profit After Tax for the quarter ended June 30 was up by 45 per cent to Rs 663 crore against Rs 456 crore for the first quarter of FY19, backed by other income.

Saumen Chakraborty, President, CFO and Global Head of HR of Dr Reddy's said revenue for the quarter under discussion was up by three per cent at Rs 3,844 crore against Rs 3,721 crore in the same quarter last fiscal.

"There was Rs 346 crore we received from Celgene which as done on April 1. Subsequently we received the money," he said.

Dr Reddy's Laboratories on April 1 said it had entered into a confidential settlement agreement with the US-based biotechnology firm Celgene for its abbreviated new drug submissions (ANDS) related to a generic version of Revlimid capsules indicated for treatment for multiple myeloma (cancer) pending before Health Canada.

Chakraborty said they received Rs 346 crore towards the settlement of Revlimid.

To a query, Chakraborty, without giving specifics, said the company now has the financial ability for "inorganic growth".

"Our debt to equity ratio is 0.04 per cent. We are at any point of time looking at opportunities in the market place where there is synergy, where there is a good strategic player," he said.

Revenues from the Global Generics segment was at Rs 3,300 crore, up by eight per cent in the same quarter last year, primarily driven by emerging markets, India and Europe, the official said.

Revenues from North America was Rs 1,630 crore, a three per cent Year-on-year growth driven by contribution from new products and increase in volumes, partly offset by price erosion, coupled with adverse foreign exchange movement.

The company filed cumulatively 107 generic filings for pending for approval with the USFDA (104 ANDAs and 3 NDAs under 505(b)(2) route) as of June30.

Revenues from Emerging Markets grew at 10 per cent at Rs 730 crore and that from India was at Rs 700 crore, driven by volume traction and improved realisations in base business and new product launches, Chakraborty said.

However, Revenues from Pharmaceutical Services and Active Ingredients business witnessed a 16 per cent decline over the same quarter in FY19 to Rs 450 crore due todecline in sales volume of certain products, he said.

Research and Development expenses were Rs 360 crore, which is 9.4 per cent of revenues, he said.

The focus would continue to be on building complex generics, bio-similars and differentiated products pipeline, the official explained.

Meanwhile, Erez Israeli, Chief Operating Officer of Dr Reddys, will be elevated as Chief Executive Officer of the company from August 1.

G V Prasad will continue as the Co-Chairman and Managing Director and Erez Israeli will continue to report to him.