Tags: Reddy | RDY | generics | growth

Dr. Reddy's Offers Global Generics Growth

By    |   Wednesday, 05 Oct 2011 04:18 PM

Dr. Reddy's Laboratories (RDY) is an Indian drug manufacturer which sells generic drugs on a global scale. Shares of Dr. Reddy's trade in the United States as American Depositary Receipts. Each ADR share represents one share of Dr. Reddy's on the Indian stock market.

Dr. Reddy's Laboratories segments its pharmaceutical business into three areas. Generic drugs are produced and sold primarily in India, Russia, and North America. Pharmaceutical active ingredients are produced for sale to other drug manufacturers, and the company has its own line of proprietary products for sale in emerging market countries.

North America is Dr. Reddy's largest generic drug market. Through June 2011, the company had generated five consecutive quarters of revenue growth and had more than 70 products in the pipeline for approval. Generic sales for the company are growing even faster in India and Russia, with 200 brands for sale in India and sales growth at a better than 25 percent rate in Russia.

For the quarter which ended June 30, 2011, Dr. Reddy's reported revenues of $443 million, up from $377 million a year earlier. Reported net income was 35 cents per share, up from 28 cents.

For the full previous fiscal year which ended in March, Dr. Reddy's earned $1.46 per share. The consensus estimate for the current year earnings is $1.72 per share, and analysts are looking for $2.13 next year.

Aggressive goals

In its last fiscal year, Dr. Reddy's produced revenues of approximately $1.7 billion. The company's stated goal is $3 billion of revenues within the next three years. Net income growth has been less linear, so investors should watch the bottom line as well as sales growth going forward.

RDY does offer an interesting combination of India and Russia exposure plus generic pharmaceuticals. The company reports next on Oct. 25.

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Dr. Reddy's Laboratories (RDY) is an Indian drug manufacturer which sells generic drugs on a global scale. Shares of Dr. Reddy's trade in the United States as American Depositary Receipts. Each ADR share represents one share of Dr. Reddy's on the Indian stock market. Dr....
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2011-18-05
Wednesday, 05 Oct 2011 04:18 PM
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