Dr Reddy’s eyes better sales in Europe in FY19
Dr Reddys Laboratories on Friday expressed hope of higher sales this year in Europe, a key market, as it has overcome some of the regulatory issues that had hit its performance in the last quarter of FY18
Hyderabad: Dr Reddys Laboratories on Friday expressed hope of higher sales this year in Europe, a key market, as it has overcome some of the regulatory issues that had hit its performance in the last quarter of FY18.
The drug maker also said it wants to have a strong pipeline of difficult-to-manufacture complex formulations that address key therapeutic needs to counter the pricing pressures in the USA as it is difficult to predict how long these trends will last.
There was also a regulatory hiccup when the Federal Institute for Drugs and Medical Devices (BfArM) of Germany audited Dr Reddy's formulation unit 2 at Bachupally here, the company said in its latest annual report. This resulted in the good manufacturing practices (GMP) compliance certificate not being renewed in August, 2017. Corrective work was immediately undertaken.
After a follow-up audit, the GMP non-compliance status was withdrawn in January 2018. However, stoppage in sale to Europe for four months led to lesser revenues, it said.
"Thankfully, this is over, and we expect to increase sales in FY 2019,” Dr Reddy's Chairman and Co-Chairman K Satish Reddy and G V Prasad respectively said in the report. Prasad is also the CEO of the pharma company.