>DR. REDDY'S LABS: Developments during Q2FY11

Robust performance in India, Russia/CIS & RoW Generics markets has managed to offset lower Generics sales in other markets and overall PSAI sales: Net sales at Rs1870crs showed yoy growth of 1.8%. This performance was a direct result of the lower PSAI sales across all markets, which has been offset by robust growth in India, Russia/CIS & RoW markets. PSAI sales declined 14.1% yoy to Rs461.7crs, impacted by price erosions and lower order flow. Ex‐PSAI, net revenues at Rs1367crs grew 7.6% yoy where India, Russia/CIS & RoW markets exhibited continuous (yoy) growth of 25.3%, 17.0% & 25.3% respectively. US generics business depicted strong sequential growth of 13%, led by market share gains in base business and new products like generic Lotrel and Tacrolimus launched in Q1FY11. Betapharm sales have stabilized and grew 23% Q‐o‐Q; they, however, declined 27% Y‐o‐Y from one‐time seasonal vaccine sales in Q2FY10.

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