Dr. Reddy’s annual revenues in Romania worth $13.2m

2010-03-09

Dr. Reddy’s, the Indian generic drug manufacturer, estimates that its sales revenues in Romania increased by 20% year on year to $13.2m in the 2009/2010 financial year, i.e. the year which ended on 31 March, according to Curierul National. In terms of volume, the sales of the Romanian division of Dr. Reddy’s increased by 21.4% to 3.4 million units. In the year 2009/2010 the company launched two new products, which generated sales worth $0.25m on the Romanian market. Next year, Dr. Reddy’s plans to add seven more medicines to its Romanian product portfolio and expects these to contribute 16-20% to its annual sales.
Romania remains one of the most profitable markets for the company despite the fact that its sales and profit have been affected by changes in market regulations. It is estimated that its EBITDA will exceed 35% of total sales in 2009/2010, but the figure is expected to fall by 30% during the next financial year, i.e. the year which ends on 31 March 2011, because of the application of the clawback mechanism, a 5-11% tax imposed on the revenues of manufacturers generated by the sales of reimbursed drugs in Romania.