DRL Q1 net profit dips slightly

Hyderabad: Hyderabad-based global pharma major Dr Reddy's Laboratories Ltd (DRL) has reported a 1.5 per cent decline in its net profit at Rs 571 crore in the quarter (Q1) ended June 30 of this financial year from Rs 579 crore during the same quarter last fiscal. It attributes the dip in the profit to the erosion of some products in North American business and investments in emerging markets.

However, the company's revenues increased 11 per cent to Rs 4,919 crore in Q1 FY22 when compared to Rs 4,417 crore in the corresponding quarter previous year. Its revenues from India surged 69 per cent at Rs 1,060 crore during the review period, while the revenues from Europe and emerging markets grew 12 per cent and 14 per cent respectively.

"The financial performance of the quarter has been driven by healthy sales growth. While we continue to sharpen execution in our core business, we are also conducting pilots in areas such as nutrition, direct-to-customer, and digital health and wellness, which can be future growth drivers," The company's Co-Chairman and MD, GV Prasad said in a statement.

He was confident about improving the company's margins in the coming quarters consequent to the scaling up of new product launches and productivity. It has launched six new products during the quarter including Sputnik-V vaccine and 2-deoxy-D-glucose for Covid in Indian market. It also launched Curhealth, a nutritional health mix for building immunity.

During the same quarter, the company has launched six new products in the US market and two products in Canada. It has filed two new abbreviated new drug applications (ANDAs) during the quarter, and an overall 93 generic filings are pending for approval with the drug regulator USFDA. Out of these, the company leadership believes 24 have 'First to File' status.

Covid portfolio

The city-headquartered drug firm continues to play a big role in the fight against Covid-19 by acting proactively to bring multiple preventive and curative treatment options, including Sputnik V vaccine. Dr Reddy's CEO – Branded Markets (India and Emerging Markets) MV Ramana said, "We had a full rollout of Sputnik V vaccine in Indian market during this month and we are planning to scale up in August."

He adds, "We are working with Russian partner RDIF for ramping up supplies. We are also working with six CMOs (contract manufacturing organisations) in India for manufacturing readiness. We have launched it across 80 cities and more than 2.5 lakh people have been vaccinated so far." Asked about the supply of Sputnik V to the government, Ramana said: "We are planning to produce the vaccine indigenously by the end of September. Thereafter, we may supply the vaccine to the government."

A trial study is ongoing in Russia for the adolescent segment (12-18 years age) of Sputnik V vaccine. It is likely to complete by October, he said. The company is working on Sputnik Light, for which phase 3 trials in Russia will be leveraged for India approval. It anticipates Sputnik Light clinical data in a week's time.

Rolls out Svaas with ICICI Lombard

Hyderabad: Dr Reddy's Laboratories Ltd has partnered with ICICI Lombard General Insurance Company for the pilot launch of its digital health solution Svaas in Hyderabad and Visakhapatnam. The company plans to scale up in key metros and tier 1 cities during the coming months.

Svaas brings together doctors, laboratories and diagnostics, pharmacies and insurance to provide a one-stop cashless outpatient healthcare and wellness-oriented services through mobile application and web-based platform. It offers both in-person and remote tele/video consultations, along with home sample collections and medicine deliveries.

MV Ramana said: "The current pandemic has strongly underscored the importance of digital healthcare services. While telemedicine has picked up pace in India in recent times, there is a growing need for high-quality outpatient care that is holistic, credible and addresses concerns around user experience."