Dr. Reddy’s Laboratories Limited (NYSE:RDY) Q3 2023 Earnings Call Transcript

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Erez Israeli: I don’t see anything special as related to company or country in the — everybody just expect to my opinion are waiting to see how events will fold in the country. And to the best of my analysis, if people did not leave the market as of yet and so it’s not a growth that’s coming because other than — it’s real growth that’s coming from the consumption of . So, the way we are looking at it as part of our products, our OTC which have seasonality to them and the biologics — different seasonality that are related to the timing the government is fulfilling it and they are exposed that very much the same demand over the years. So, so far is behaving very normal to what we see and the growth is attribute primarily to our productivity and not to external elements.

Saion Mukherjee: Okay. And one last question, if I can for India, adjusted for the acquisitions, Cidmus, et cetera, can you share how the organic growth has been? And I think couple of quarters back, you indicated Cidmus to be a big drag on your gross margins, now with the patent of how should we think about the situation on that product?

Erez Israeli: So, this product will be profitable for us, the cost structure will be better in the future and the brand is well accepted by the community is actually number one in the future as we speak. And we are going to continue to see growth in India, in all the places in which we are focusing. So, the — like we indicate, I’m expecting India to continue to be double-digit growth also in the future and on top of it, we will see both inorganic move, investment in collaborations and divergence. So, all of these movements will happen in India also in the near future as well as the longer term.

Saion Mukherjee: Okay. And can you share the growth number adjusted for acquisition and divestments just to understand the organic growth in India this quarter?

Parag Agarwal: Saion we look at the entire business as a portfolio. So, we don’t analyze including and excluding acquisitions. I think overall, we reported a growth of 10%. And as Erez said, we are confident that we’ll be able to continue to drive growth in India given the growth levers.

Saion Mukherjee: Okay. Thank you.

Operator: Thank you. Next question is from the line of Sumit from RDA. Please go ahead.

Unidentified Analyst: Thank you for the opportunity. Is AMITIZA still meaningful opportunity for us as sales are declining and few companies have already discontinued the product?

Parag Agarwal: So, your voice is not clear. Can you repeat the question?

Unidentified Analyst: Is AMITIZA still meaningful product for us? As sales are declining. Hello?

Parag Agarwal: Which product?

Unidentified Analyst: AMITIZA?

Erez Israeli: The voice is cracking, sorry, we cannot hear the question. Can you repeat please?

Unidentified Analyst: Is AMITIZA still meaningful opportunity for us as sales are declining and few companies have already discontinued the product?

Erez Israeli: Yes, so we have launched this product in US I think in quarter one. I think there are significant number of players if I’m not wrong, about eight to 10 players have launched. And with price erosion I think has been fairly decent, so we are having a decent pace, but it’s not a very large product for us.

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