Turnover at Rs 331.60 crore is 32.69 per cent higher compared to Rs 249.90 crore. The company has provided Rs 4.50 crore towards taxation.

According to a company press release, major contribution came from the formulations business, which grew by 57 per cent to touch Rs 207 crore as against Rs 132 crore in 1996-97. Domestic formulations sales at Rs 136 crore, rose 39 per cent. The segments that made significant contributions to domestic formulation sales include: gastroenterology (30 per cent), cardiovasculars (21 per cent), pain management (21 per cent) and anti-infectives (19 per cent).

The brands which continued to maintain number one position in the market include, Omez (Omeprazole), Stamlo (amlodipine), Lomaday (lomefloxacin), Ketorol (Ketorolac),while Nise (nimesulide) also moved into the top slot in its molecule. Brands, in the number two slot in their segments, are Enam (enalapril), Norilet (norfloxacin), Salmeter (salmeterol), Lanzap (lansoprazole) and Stamlo-Beta (amlodipine and atenolol). The company's overall ORG ranking improved to 25 from 30 in 1996-97. Formulations exports increased to Rs 71 crore as against Rs 35 crore in the previous year. The company also consolidated its operations in the CIS countries and established itself in Vietnam, Myanmar and Sri Lanka. In the current fiscal, the company will make inroads in to Kenya, Yemen, China, Trinidad among others.

The bulk drugs business registered sales of Rs 115 crore in 1997-98, marginally up from Rs 113 crore in the previous year. While the domestic operations accounted for Rs 66 crore, exports brought in Rs 49 crore. Though the company is presently operating in over 50 countries, its focus in 1998-99 will be to access regulated markets. Dr Reddy's also plans to supply bulkintermediates to innovator companies. The diagnostics division contributed Rs 10 crore in 1997-98, double that of the previous year. Highlight of the year was the company's entry into biotechnology with the setting up of a full-fledged sterile production for manufacturing therapeutic recombinant proteins.

The company also set up a critical care division to focus on markets catering to specialty segments like nephrology, infectious diseases and oncology. This division will also market in India the molecules discovered and patented by Swiss research and development company, Debiopharm, including a new platinum analogue oxaliplatin and a GnRH analog Decapeptyl for cancer.

In the area of drug discovery, the potential insulin sensitiser, discovered by the Dr Reddy's Research Foundation (DRF) and licensed to Novo Nordisk of Denmark, has moved into phase one trials. The success of this compound, the company says, will have a significant bearing on its future. As on date, DRF has filed 21 patents in the US in theareas of cancer and diabetes. The company has also launched Reclide, an anti-diabetic and Lostatin, a cholestrol-lowering drug, besides acquired brands like Riflux (antacid) and vitamin supplement Becelac. Nectacryl, a bio-adhesive was launched under a marketing agreement with Hyderabad-based Nectar Labs.

The scrip was quoted at Rs 500 on the kerb today.