Formulations exports pushed Dr Reddy''s sales up 35 pc
06 Jan 2000
Dr Reddy’s Laboratories’ sales grew by 34.59 per cent in the third quarter of the financial year 1999-2000 to Rs 120.68 crore as compared to Rs 89.66 crore in the corresponding period during the last financial year.
The growth was largely on account of a 62.79 per cent increase in formulations sales to Rs 79.83 crore from Rs 49.04 crore in the third quarter of 1998-99 financial year. The finished dosages business contributed 66.15 per cent to the company’s sales during this period.
Formulations exports, which accounted for 19.26 per cent of sales, grew by a whopping 160.65 per cent to Rs 23.25 crore from Rs 8.92 crore. This is largely due to exports to Russia and CIS countries, which grew phenomenally by 252.48 per cent to Rs 16.32 crore from Rs 4.63 crore in the corresponding period last fiscal.
On the domestic front, the third quarter sales of finished dosage forms increased 41 per cent to Rs 56.58 crore compared to Rs 40.12 crore during the corresponding period of 1998-99. Comparatively, the domestic formulations market is growing at an average eight per cent, says a company release.
The company registered a 0.75 per cent drop in bulk drug sales "due to conditions of oversupply and price competition". Sales went down marginally to Rs 37.04 crore in the third quarter from Rs 37.32 crore. Bulk drugs contributed 30.69 per cent to the company’s sales during this period.
The domestic bulk drug sales was down 3.3 per cent to Rs 22.04 crore from Rs 22.80 crore. Exports, however, grew 3.3 per cent to Rs 15 crore from 14.52 crore. The diagnostics business, accounting for 3.16 per cent, grew 15.45 per cent to record Rs 3.81 crore sales compared to the third quarter sales of Rs 3.3 crore in 1998-99 financial year.
The company also announced that anti-diabetic products DRF 2593 and DRF 2725 are progressing well in phase 2 and phase 1 trials respectively at Novo Nordisk in Denmark. The company is awaiting approval from the drug controller for conducting clinical trials on the anti-cancer compound DRF 1042. Clinical trials on another anti-cancer molecule DRF 1644 will be conducted in Netherlands, the release adds.
Sales figures for third quarter
| Business | Oct-Dec 1999 Rs in crore | Oct-Dec 1998 Rs in crore
| Growth % |
| Total sales | 120.68 | 89.66 | 34.59 |
| Formulations | 79.83 | 49.04 | 62.79 |
| Domestic | 56.58 | 40.12 | 41 |
| Exports | 23.26 | 89.18 | 160.65 |
| Russia/CIS | 16.32 | 4.63 | 252.48 |
| Other Countries | 0.69 | 0.43 | 60.47 |
| Bulk drugs | 37.04 | 37.32 | -0.75 |
| Domestic | 22.04 | 22.80 | -3.33 |
| Exports | 15.00 | 14.52 | 3.33 |
| Diagnostics | 3.81 | 3.30 | 15.45 |