Dr. Reddy's Laboratories Ltd. (RDY - Free Report) reported fourth-quarter fiscal 2019 earnings of 38 cents per share, up from 26 cents in the year-ago quarter, per American Depositary Share (ADS).
Moreover, revenues increased 14% year over year to $581 million. Revenues also surpassed the Zacks Consensus Estimate of $565 million.
Year to date, shares of the company have increased 4.5% against the industry’s decline of 2.9%.
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 INR30.3 billion ($439.3 million), up 9% year over year in local currency during the fiscal fourth quarter. Growth was led by contributions from emerging markets and India, primarily due to volume gains, product launches and scaling up of new markets.
PSAI revenues were INR6.7 billion ($97.8 million), up 8% in local currency from the year-ago quarter.
Revenues at the Proprietary Products and Others segment came in at INR3 billion ($43.6 million), down 52% in local currency.
Further, research and development expenses were down 16% year over year to $53 million.
Selling, general and administrative expenses were $179 million, up 3% year over year.
As of Mar 31, 2019, Dr. Reddy’s had 110 generic filings (110 abbreviated New Drug Applications [ANDAs] and three new drug applications) that are pending FDA approval. Of these ANDAs, 60 were Para IV filings and 34 have first-to-file status.
Fiscal Full-Year 2019 Results
The companyreported full-year fiscal 2019 earnings of $1.64 per share, up from 85 cents in fiscal full-year 2018, per ADS.
Revenues increased 14% year over year to $581 million.
In fourth-quarter fiscal 2019, Dr. Reddy’s top and bottom lines registered year-over-year growth. This was supported by significant growth in emerging markets and India, pickup in product launches, and improvements in cost structure.
However, the company expects to experience price erosion in the North America generics market. The European market is also witnessing high price erosion in some of the key molecules.