DRL Q1 7 times Generic Suboxone gives

Hyderabad: Thanks to Forex gains, the launch of Generic Suboxone and the improvement of organizational efficiency, pharmaceutical giant Red Dreddy's Laboratories (DRL) reported Thursday a net profit almost seven times higher in the first quarter ended June 30, 2018, at Rs 456 crore compared to Rs 59 crore in the period of the previous year. This was a 12% increase in total income to Rs 3,720.7 crore in the first quarter of FY19, against Rs 3,136 crore in the corresponding quarter of FY18.

Commenting on the results, DRL co-president and CEO GV Prasad said, "I am pleased with our first quarter results, helped by the launch of Generic Suboxone." Our Focus on Operational Efficiency has helped to significantly improve our margin profile and in the future, while we continue to experience price erosion in the North American generic market, we will continue to drive growth and costs, while improving our quality management systems and establishing sound portfolios.

DRL had recently launched an imitating version of the blockbuster drug addict Indivior drug addict Suboxone Film in the United States following which a US court had prevented DRL from selling its generic version to the market. "We are cautiously optimistic … The Suboxone verdict will have an impact on ongoing performance ..," said Prasad.
Segment wise, the global generic segment revenue grew by 12% to Rs 3.064 crore compared to Rs 2746 crore, pharmaceutical services and active ingredients (PSAI) segment revenues increased by 16% to Rs 5,409 crore from of Rs 4,651 crore and exclusive products revenues increased by 10% to Rs 116 crore of Rs 105 crore.

In the global generic segment, sales in North America jumped 6% to Rs 1,590 crore (Rs 1,495 crore in Q1FY18) in Europe by 3% to Rs 202 crore, emerging markets rose 16% to Rs 664 crore (Rs 575 crore) and India's share increased by 30% to Rs 607 crore (Rs 469 crore).

As Dr. Reddy strives for operational efficiencies, he began to cut senior management jobs and removed some redundant positions.

"We sought to optimize our design and in this framework, some jobs were redundant and we took action … it's a continuous process and part of what is done … this great phase of cuts is over now … globally set up on a global scale, including international sites, it is about 150-200 people … "Prasad explained .

He said that the compression process started a few weeks ago and that the task will be completed this quarter. The goal of this process is to make the company "lighter, more agile and more productive," he said.

While the layoffs occurred earlier, it is the first time that the company has laid the ax at the senior management level, he added.