Dr. Reddy's Laboratories Ltd. (RDY - Free Report) reported first-quarter fiscal 2020 earnings of 58 cents per share, up from 40 cents in the year-ago quarter, per American Depositary Share (ADS).
Moreover, revenues increased 3% year over year to $558 million.
Year to date, shares of the company have increased 0.9% against the industry’s decline of 4.4%.
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 INR33billion ($478.8 million), up 8% year over year in the fiscal first quarter. Growth was led by contributions from emerging markets and India, primarily owing to volume gains and product launches.
PSAI revenues were INR4.5 billion ($65.3 million), down 16% from the year-ago quarter.
Revenues at the Proprietary Products segment came in at INR281 million ($4.1 million), down 61%.
Research and development expenses were down 13% year over year to $52 million.
Selling, general and administrative expenses were $175 million, flat year over year.
As of Jun 30, 2019, Dr. Reddy’s had 107 generic filings (104 abbreviated New Drug Applications [ANDAs] and three new drug applications) pending FDA approval. Of these 104 ANDAs, 58 were Para IV filings and 34 have first-to-file status.
In first-quarter fiscal 2020, 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.