India's Dr Reddy's Labs profit jumps 12% on strong U.S. sales

BENGALURU (Reuters) - Generic drugmaker Dr Reddy's Laboratories Ltd reported a 12.2% rise in second-quarter profit on Friday, helped by the launch of the generic version of a popular cancer drug in its key North American market.

Profit rose to 11.13 billion Indian rupees ($135 million) in the three months ended Sept. 30 from 9.92 billion rupees a year earlier, the Hyderabad-based firm said in an exchange filing.

Revenue from its main global generics segment grew 18% driven by launch of Lenalidomide capsules – the generic version of Bristol Myers Squibb's cancer drug Revlimid – in the U.S. market last month, and sequential quarter improvement in Russia sales, Dr Reddy's said.

That helped offset a 23% decline in sales in its pharmaceutical services and active ingredients segment due to a higher base a year earlier, which had COVID product sales.

Sales in the company's key North American market surged 48% in the quarter on launches of new products, including Lenalidomide, and favourable foreign exchange rates.

Gross profit margins rose to 59.1% in the latest quarter, compared with 53.4% a year ago.

The company's shares closed down 0.7% at 4,459.95 rupees on Friday ahead of the results, taking their decline for the year to 9.1%, while the Nifty pharma index has dropped 8.3%.

($1 = 82.4430 Indian rupees)

(Reporting by Akansha Victor in Bengaluru; Editing by Shailesh Kuber)