Dr Reddy's Lab is expecting a healthy growth for the financial year 2020, with Q2 likely to be better than Q1, said Erez Israeli, CEO of the company. Israeli has replaced GV Prasad, who stepped down as the CEO of the company on Monday.
The company posted a mixed set of earnings in the first quarter as revenue missed estimates but margins on an adjusted basis were in-line.
Talking about management changes, Israeli said, “The changes are not significant. I continue to report to Mr Prasad. Mr Prasad is staying with the company and will continue as a co-chairman and will become a managing director.”
“I have some extended responsibility for quality and proprietary products and driving primarily an agenda, which is the growth of the company and make the company more efficient,” he added.
On the business front, he said, “We did have a certain issues with pharmaceutical services & active ingredients (PSAI) this quarter and the numbers were lower than they should.” “It impacted Q1 results but I believe in Q2 things will be much better."
According to him, price pressure in the US was related to commercial and base products.
Speaking about other markets, the CEO said, “We continue to see healthy growth this year and it’s helping us with a diversification.”