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Dr. Reddy's (RDY) Earnings & Revenues Trump Estimates in Q2
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Dr. Reddy's Laboratories Limited (RDY - Free Report) reported second-quarter fiscal 2023 earnings of 82 cents per American Depositary Share, which beat the Zacks Consensus Estimate of earnings of 59 cents. In the year-ago quarter, the company reported earnings of 73 cents. Earnings were also higher than our estimate of 59 cents.
In second-quarter fiscal 2023, revenues grew 9% year over year to $775 million, surpassing the Zacks Consensus Estimate of $763 million. Total revenues were higher than our estimate of $763.3 million in the reported quarter.
Shares of the company have decreased 15.5% in the year compared with the industry’s decline of 28.1%.
Image Source: Zacks Investment Research
Quarter in Detail
Dr. Reddy’s reports revenues under three segments: Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”), and Proprietary Products and Others.
Global Generics revenues were INR 55.9 billion, up 18% year over year, in the fiscal second quarter. Growth was led by the launch of Lenalidomide capsules in the U.S. market and quarterly sales improvement in the Russian market.
The company launched seven products in North America, including Lenalidomide capsules, Fesoterodine Fumarate tablets, Bortezomib injection 3.5 mg, Neostigmine PFS, Potassium Chloride UD, Fexofenadine HCl + Pseudoephedrine HCl ER tablets and Oxaliplatin injection in Canada.
As of Sep 30, cumulatively, 81 generic filings were pending approval from the FDA (78 abbreviated New Drug Applications [ANDAs] and three new drug applications). Of these 81 ANDAs, 42 are Para IVs and 22 have first-to-file status.
PSAI revenues were INR 6.4 billion, down 23% from the year-ago quarter, primarily due to a higher base, which took place in second-quarter fiscal 2022 with covid product sales.
Revenues in the other segment came in at INR 677 million, down 63% year over year.
Research and development expenses were up 9% year over year to $60 million. The company is focused on building a global pipeline of new products across its markets.
Selling, general and administrative expenses were $204 million, up 4% year over year, primarily owing to investments in the business growth.
Our Take
In second-quarter fiscal 2023, Dr. Reddy’s top and bottom lines registered year-over-year growth.
However, the company continues to face price erosion in the North American generics market, which will adversely impact sales.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
Loss per share estimates for Akero Therapeutics narrowed 6.9% for 2022 and 4.8% for 2023 in the past 60 days.
Earnings of Akero Therapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. AKRO delivered an earnings surprise of 7.66% on average.
Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.
Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.
Loss per share estimates for Fulcrum Therapeutics narrowed 3.6% for 2022 and 7.9% for 2023 in the past 60 days.
Earnings of Fulcrum Therapeutics surpassed estimates in two of the trailing four quarters and missed on the other two occasions. FULC delivered a negative earnings surprise of 1.41% on average.
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Dr. Reddy's (RDY) Earnings & Revenues Trump Estimates in Q2
Dr. Reddy's Laboratories Limited (RDY - Free Report) reported second-quarter fiscal 2023 earnings of 82 cents per American Depositary Share, which beat the Zacks Consensus Estimate of earnings of 59 cents. In the year-ago quarter, the company reported earnings of 73 cents. Earnings were also higher than our estimate of 59 cents.
In second-quarter fiscal 2023, revenues grew 9% year over year to $775 million, surpassing the Zacks Consensus Estimate of $763 million. Total revenues were higher than our estimate of $763.3 million in the reported quarter.
Shares of the company have decreased 15.5% in the year compared with the industry’s decline of 28.1%.
Image Source: Zacks Investment Research
Quarter in Detail
Dr. Reddy’s reports revenues under three segments: Global Generics, Pharmaceutical Services & Active Ingredients (“PSAI”), and Proprietary Products and Others.
Global Generics revenues were INR 55.9 billion, up 18% year over year, in the fiscal second quarter. Growth was led by the launch of Lenalidomide capsules in the U.S. market and quarterly sales improvement in the Russian market.
The company launched seven products in North America, including Lenalidomide capsules, Fesoterodine Fumarate tablets, Bortezomib injection 3.5 mg, Neostigmine PFS, Potassium Chloride UD, Fexofenadine HCl + Pseudoephedrine HCl ER tablets and Oxaliplatin injection in Canada.
As of Sep 30, cumulatively, 81 generic filings were pending approval from the FDA (78 abbreviated New Drug Applications [ANDAs] and three new drug applications). Of these 81 ANDAs, 42 are Para IVs and 22 have first-to-file status.
PSAI revenues were INR 6.4 billion, down 23% from the year-ago quarter, primarily due to a higher base, which took place in second-quarter fiscal 2022 with covid product sales.
Revenues in the other segment came in at INR 677 million, down 63% year over year.
Research and development expenses were up 9% year over year to $60 million. The company is focused on building a global pipeline of new products across its markets.
Selling, general and administrative expenses were $204 million, up 4% year over year, primarily owing to investments in the business growth.
Our Take
In second-quarter fiscal 2023, Dr. Reddy’s top and bottom lines registered year-over-year growth.
However, the company continues to face price erosion in the North American generics market, which will adversely impact sales.
Dr. Reddy's Laboratories Ltd Price, Consensus and EPS Surprise
Dr. Reddy's Laboratories Ltd price-consensus-eps-surprise-chart | Dr. Reddy's Laboratories Ltd Quote
Zacks Rank & Stocks to Consider
Dr. Reddy's currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the biotech sector include Akero Therapeutics, Inc. (AKRO - Free Report) , Atea Pharmaceuticals, Inc. (AVIR - Free Report) and Fulcrum Therapeutics, Inc. (FULC - Free Report) , all sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per share estimates for Akero Therapeutics narrowed 6.9% for 2022 and 4.8% for 2023 in the past 60 days.
Earnings of Akero Therapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. AKRO delivered an earnings surprise of 7.66% on average.
Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.
Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.
Loss per share estimates for Fulcrum Therapeutics narrowed 3.6% for 2022 and 7.9% for 2023 in the past 60 days.
Earnings of Fulcrum Therapeutics surpassed estimates in two of the trailing four quarters and missed on the other two occasions. FULC delivered a negative earnings surprise of 1.41% on average.