Surajit Pal, Research Analyst at Prabhudas Lilladher, said the pharma sector is undergoing a transition and all the large midcaps will underperform.
While Dr Reddy’s Laboratories December quarter earnings beat street estimates, the pharma major is far from making long-term sustainable growth a reality, said Surajit Pal, Pharma Analyst at Prabhudas Lilladher.
Speaking to CNBC-TV18, Pal said largecaps need two-three years to establish growth drivers, and supplying fresh products and strong approvals would be key to sustaining revenue growth.
He said Dr Reddy’s had done a good job this quarter under the circumstances.
DRL's profit for the quarter declined 16 percent year-on-year to Rs 492.3 crore but increased sharply by 59.4 percent sequentially. Revenue slipped 6.4 percent YoY to Rs 3,723.2 crore due to weak global generics business but grew 3 percent quarter-on-quarter.
The company told CNBC-TV18 that pricing pressure in the US had been quite deep.
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