Pharma major Dr. Reddy’s Laboratories, for which Russia and CIS region count among important, growth markets, is closely monitoring developments amid the escalating tensions between Ukraine and Russia.
“We have been monitoring developments closely and preparing accordingly, and continue to do so,” a company spokesperson said, without sharing specifics, to a query on likely impact for Dr. Reddy’s in the wake of Russia launching military operations against Ukraine.
Noting that Dr. Reddy’s have had a strong presence in the region for over three decades, the spokesperson said “ensuring well-being of our staff is the first and foremost priority, along with meeting patient needs and business continuity”.
On Sputnik vaccine supplies, Dr. Reddy’s said, “We have manufacturing capabilities in India. Drug substance [of the vaccine] is not imported and hence there is no impact.” Third COVID-19 vaccine to be approved by India, Sputnik is available in the country as part of a partnership between Russia’s sovereign wealth fund RDIF and Dr. Reddy’s. While initial doses of the two dose vaccine were imported, Sputnik is now being made in India, in partnership with a clutch of vaccine manufacturers. India had also recently approved the single dose Sputnik Light vaccine.
For the December quarter, Dr. Reddy’s reported 5% year-on-year increase in revenues from Russia to ₹470 crore on the back of new products launches, a favourable Forex rate and increase in prices of some of the products, which it said was offset partially by a reduction in sales volumes in its base business. The company’s total revenue for the quarter stood at ₹5,320 crore.
Revenue from other CIS countries and Romania market, for the quarter, was ₹240 crore, an 11% year-on-year growth driven by launch of new products, offset partially due to lower volumes in the base business.
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