Dr. Reddy’s becomes India’s second biggest drugmaker by sales

Dr. Reddy's Laboratories Ltd. and Cipla Ltd. surpassed Aurobindo Pharma to rank as the 2nd and 3rd largest drug manufacturers in India by sales in the three months that ended on September 30. This was the first change in the pecking order of the nation’s $50 billion pharmaceutical sector in more than seven years.

As per reports, Sun Pharmaceuticals maintained its dominance as India's largest pharmaceutical company, with sales of $1.3 billion.

Dr. Reddy's, which is based in Hyderabad, posted sales of $774 million in the third quarter, while Aurobindo saw its sales decline to $701 million. Cipla, a Mumbai-based drugmaker, reported $712 million in revenue during that period.

According to an analyst at Axis Securities, sales of the generic versions of the oral cancer medication Revlimid, which made up for just over one-third of Dr. Reddy's overall business in the US, significantly benefited Dr. Reddy's and Cipla's outstanding performance.

Cipla hasn't reported any new business from the blood cancer medication. The first few pharma companies to file an application that satisfies the standards of the US drugs regulator get the lucrative 180 days of selling the medicine in the US without competition from generic rivals.

Cipla and Dr. Reddy's received the US FDA’s approval for their generic versions, following the expiration of patent for Revlimid, which was developed by Bristol Myers Squibb, last year.

Ankush Mahajan, who works as an analyst at Axis Securities, observed that although price erosion and high inflation could decrease revenue margins, Dr. Reddy’s was creating a worldwide pipeline of biosimilars and constructing novel chemical entities (NCEs) for immuno-oncology.

Mahajan further stated that the company was also creating a portfolio of nutraceuticals, vaccines, contract development and manufacturing organizations (CDMOs), and digital healthcare platforms.

Aurobindo has been suffering from low sales and falling prices for its existing formulation business in the US, which accounted for almost 46% of the total sales. The company's revenue dropped consecutively for the second time in nine months after sales fell 3.2% in January-March.

Source credit: https://www.livemint.com/companies/news/dr-reddy-s-is-now-no-2-drug-firm-as-old-order-changes-11668969242013.html