Bangalore: Dr Reddy’s Laboratories Ltd, India’s No. 2 drugmaker by sales, said on Thursday consolidated quarterly profit fell more-than-expected 14.3% following a drop in sales in its key US market.
The New York-listed company reported a consolidated net profit of Rs2.1 billion ($44.5 million) in its fiscal first quarter ended June, down from Rs2.45 billion a year earlier, under international accounting standards.
Revenue fell 7.5% to Rs16.83 billion, as sales in North America, its biggest export market, fell 35% to Rs3.9 billion and European revenue dipped 9.5% to Rs1.9 billion.
A Reuters poll of brokerages had estimated quarterly profit at Rs2.19 billion on revenue of Rs17.91 billion.
The company’s shares, valued at about $5 billion, ended down 1.7% at Rs1,380.60 in a firm Mumbai market.
Earlier, Dr Reddy’s said standalone net profit under Indian accounting standards rose 7.5% to Rs2.44 billion. Dr. Reddy’s 180-day exclusive marketing deal in the US for acute migraine drug sumatriptan, a generic of GlaxoSmithKline’s Imitrex, had ended in August last year hurting its sales.
The company’s German unit Betapharm, which it bought in 2006 for $572 million, has been a drag on its earnings due to regulatory issues. Dr Reddy’s has been trying to turnaround the unit, on which it took a hefty write off last fiscal year.
Shares in the company have risen by 21% this year, outpacing the 13% rise in the sector index and the 3.7% rise in the main index.