Consolidated revenue for the reporting quarter grew 11% to Rs 3,870 crore. The company has recorded a foreign exchange loss of Rs 84.3 crore on certain monetary assets in Venezuela as the Venezuelan government had modified its currency exchange system.
Drugmaker Dr Reddy's Laboratories on Tuesday reported a growth of 7.7% to Rs 518.8 crore in its consolidated net profit for the quarter ended March 2015. The company, which received a Form 483 observation from the US Food and Drug Administration (FDA) on its Srikakulam facility last November, said it is yet to hear from the US drug regulators on the unit.
Consolidated revenue for the reporting quarter grew 11% to Rs 3,870 crore. The company has recorded a foreign exchange loss of Rs 84.3 crore on certain monetary assets in Venezuela as the Venezuelan government had modified its currency exchange system.
"During Q4 FY15, pursuant to the modification of the currency exchange systems by the government of Venezuela in February 2015, the company re-evaluated its economic position and determined that it is appropriate to use the SIMADI rate (which is bolivars 193 per US dollar) to translate the surplus monetary assets and liabilities, other than those which qualify for the CENCOEX rate of 6.3 bolivars per US dollar. Accordingly, during the quarter ended 31 March 2015, an amount of Rs 84.3 crore was recorded as foreign exchange loss," the company said.
On the Srikakulam unit, Abhijit Mukherjee, chief operating officer, said on an earnings call, "We had an audit during the middle of November. We sent the first update probably in January if I recall right, and then in March or April, we sent the second update as well. So, we are continuing to send updates to FDA. Beyond that, we can't provide any further these things. But by and large, the commitments which we had made in our first response are on the verge of getting closed."
Global generics contributed 80% to sales, registering a growth of 13%. While, North America reported 15% growth, Europe grew by 32% on the back of new product launches in UK and Germany. Rest of the World (RoW) market grew by 77% for the company during the quarter. However, Russia and CIS region reported decline in growth at 27% due to currency headwinds. In the domestic market, the company recorded a growth of 16%.
The company has also plans to enter the Japanese market through partnerships for specific products, said a news agency PTI report. "Japan is certainly on our target. We are developing products for Japan. But we will enter into this market through a partner. We don't intend to do direct presence there. We are looking at product specific partnerships there," said G V Prasad, co-chairman and CEO, during a press conference in Hyderabad on Tuesday.
During the year the company launched 12 products. Expenses on R&D witnessed a year-on-year growth of 41% at Rs 1,740 crore, which is 11.8% of the revenues of 2014-15. It made 13 new product filings in the US during the year.
"The increase is in line with our planned scale-up in development activities. Current year growth is shaped by scale-up of the injectable franchise and market share gains in select molecules," the company said.
It also said that cumulatively 68 abbreviated new drug applications (ANDAs) are pending for approval with the US FDA of which 43 are Para IVs and the company believes that 13 of them to have 'first-to-file' status.
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