Dr. Reddy's Laboratories
For the year, revenue slipped 23% year over year. Most of the lost revenue owed to lower U.S. sales; India and Russia are still booming, bringing in 16% and 13% year-over-year growth, respectively. Even growth in U.S. sales is looking pretty good, coming in at 39% year over year if you exclude the one-time opportunities from the prior year.
The only place that's really slacking is Germany, where prices have taken a severe beating. While Dr. Reddy's increased its volume by 26% in the last fiscal year, revenue rose only about 2.5% in rupee terms. Future growth in Germany isn't looking too hot, either; prices are expected to drop another 6% to 8% next month.
The good news is that the difficult year-over-year comparisons are finished. Dr. Reddy's expects that revenue should grow 25% in its next fiscal year, and the company recently purchased manufacturing plants from BASF and Dow Chemical
If Dr. Reddy's can keep expenses down and grow its bottom line by 25% or more, its current P/E around 22 looks pretty cheap. Compare that number to Teva Pharmaceuticals
Further non-generic Foolishness:
