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Dr. Reddy's (RDY) Q1 Earnings Decline Y/Y, Sales Increase

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Dr. Reddy's Laboratories Ltd. (RDY - Free Report) reported first-quarter fiscal 2021 earnings of 46 cents per American Depositary Share ("ADS") compared with 53 cents in the year-ago quarter.

Moreover, revenues grew 15% year over year to $585 million.

While the sales volume were impacted in some of the markets due to lower prescriptions generated and fall in patient footfalls in pharmacies/clinics due to COVID-19, the pricing environment was relatively stable, new product launches continued and depreciation of rupee against the U.S. dollar and Euro supported the business.

So far this year, shares of the company have gained 44.4% against the industry’s decline of 4.1%.

Quarter in Detail

Dr. Reddy’s reported revenues under three segments — Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”), and Proprietary Products and Others.

Global Generics revenues were INR 35.1 billion ($464.4 million), up 6% year over year in the fiscal first quarter. Growth was led by contributions from Europe and emerging markets,partially offset by declines in India.

The company launched six products in North America during the reported quarter, including Fenofibrate Tablets, Nitroglycerin Patch, Amphetamine Sulfate Tablets, Desmopressin Acetate Ampules, Colchicine Tablets and Abiraterone Acetate Tablets.

PSAI revenues were INR 8.6 billion ($113.2 million), up 88% from the year-ago quarter.

Revenues at the Proprietary Products segment came in at INR 0.6 billion,declining40% year over year due to the absence of the Neurology franchise products (the U.S. and select territory rights of which were sold in the previous year).

Research and development expenses were up 10% year over year to $53 million.The company is also undertaking the development of a few projects pertaining to COVID-19-related drugs.

Selling, general and administrative expenses were $169 million, up 6% year over year.

As of June 30, 2020, Dr. Reddy’s had 101 generic filings (99 abbreviated New Drug Applications [ANDAs] and two new drug applications) pending FDA approval. Of these 99 ANDAs, 54 were Para IV filings and 28 have first-to-file status.

Zacks Rank & Key Picks

Dr. Reddy’s currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Emergent BioSolutions Inc. (EBS - Free Report) , BioMarin Pharmaceutical Inc. (BMRN - Free Report) and Applied Therapeutics Inc. (APLT - Free Report) all carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Emergent’s earnings per share estimates have increased from $3.14 to $4.23 for 2020 and from $3.35 to $4.63 for 2021 in the past 60 days.

BioMarin’s earnings per share estimates have increased from $1.51 to $1.57 for 2020 and from $2.46 to $2.80 for 2021 in the past 60 days.

Applied Therapeutics’ earnings per share estimates have increased from 46 cents to 47 cents for 2021 in the past 60 days.

Dr. Reddys Laboratories Ltd Price, Consensus and EPS Surprise

Dr. Reddys Laboratories Ltd Price, Consensus and EPS Surprise

Dr. Reddys Laboratories Ltd price-consensus-eps-surprise-chart | Dr. Reddys Laboratories Ltd Quote

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