HYDERABAD/BENGALURU (Reuters) -India’s Dr Reddy’s Laboratories reported a bigger-than-expected rise in second-quarter profit on Friday, boosted by strong U.S. sales of its generic version of the popular cancer drug Revlimid.
The company’s consolidated net profit after tax rose 33% to 14.82 billion rupees ($178 million) in the quarter ended Sept. 30, beating analysts’ average estimate of 12.69 billion rupees, as per LSEG data.
Consolidated quarterly revenue rose 9% to 69.03 billion rupees 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 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 5,397.30 rupees ahead of results on Friday.
They rose 8.3% during the September quarter, compared with a 12% climb in the Nifty Pharma index. ($1 = 83.2300 Indian rupees)
(Reporting by Rishika Sadam and Kashish Tandon; Editing by Savio D’Souza and Mrigank Dhaniwala)
