Dr Reddy's reports huge rise in profits thanks to generic Prozac

Dr Reddy's Laboratories of India has posted a huge rise in net incomefor the fiscal quarter ended September 30, driven by strong takeup in the USA of the company's generic version of Eli Lilly's antidepressant Prozac (fluoxetine). Earlier this year, the firm and US partner Pharmaceutical Resources received approval from the US Food and Drug Administration to market a 40mg capsule formulation of the drug (Marketletter July 9).

Dr Reddy's fiscal second-quarter net profits reached 1.43 billion rupees ($29.8 million), up from 294.73 million rupees for the like, year-earlier period, and this was despite the company writing off 1.08 billion rupees in R&D costs and a fall in value of long-term investments. Sales rose 92% to 4.67 billion rupees, with sales of generic fluoxetine contributing 1.64 billion rupees, or 35% of total turnover.

Dr Reddy's began selling the generic version of Prozac in August, immediately after Lilly's patent expired, and has benefited from enjoying 180-day marketing exclusivity after being the first to file in the USA. The exclusivity period ends in February 2002.