Dr Reddy's Q2 results: Net profit rises 33% to Rs 1,482 cr

Dr Reddy's Laboratories reported 33% rise in second-quarter profit on Friday, boosted by strong US sales of its generic version of the popular cancer drug Revlimid.

The company's consolidated net profit was Rs 1,482 crore in the quarter ended September 30, 2023 as against Rs 1,114 crore in the year-ago period.

Consolidated quarterly revenue rose 9% to Rs 6,903 crore led by a 9% growth in the key global generics segment. North America business, the largest contributor to this segment, grew 13%.

Sales in India and Europe markets also rose 3% and 26%, respectively.

The Hyderabad-based company's portfolio includes generic drugs, complex biosimilars and active pharmaceutical ingredients.

It launched Lenalidomide capsules last year, which are a generic version of Bristol Myers Squibb's popular cancer drug Revlimid.

Dr Reddy's Laboratories Inc, a subsidiary of Dr Reddy's, is named as a defendant in a district court in the U.S. and faces allegations of improperly restraining competition and maintaining a shared monopoly in the sale of brand and generic Revlimid.

Earlier on Friday, rival Cipla CIPL.NS reported a bigger-than-expected rise in second-quarter profit, boosted by strength in its key domestic and North American business.

Strong sales in the North American market, including those of Revlimid, also helped boost Cipla's profit during the quarter.

Shares of Dr Reddy's settled 0.5% down at Rs 5,397.3 ahead of results on Friday.

They rose 8.3% during the September quarter, compared with a 12% climb in the Nifty Pharma index.

With inputs from Reuters