Strong US pipeline, sustained growth trajectory main trigger for Dr Reddy's

Excluding the strong US show led by Revlimid, Q2 was a mixed bag

Pharma major Dr Reddy’s Laboratories (DRL) posted better-than-expected September quarter results, riding on sales of the generic version of cancer drug, Revlimid in the US market. The launch of the limited competition product, production-linked incentives and product mix resulted in the company exceeding street estimates for operating and net profit by 40-50 per cent.

Tushar Manudhane and Sumit Gupta of Motilal Oswal Research had factored in sales of $30 million for Revlimid given that it was launched in September. With the North American sales at $344 million (44 per cent of overall sales) in the quarter as compared to $230