Bengaluru: Indian generic drugmaker Dr Reddy’s Laboratories Ltd said its quarterly net profit slumped nearly 40%, its third consecutive quarter of declines as pricing pressures in the US hit sales.
Indian drugmakers have faced challenges in negotiating prices as a result of consolidation among drug distributors in the US, the world’s biggest pharmaceuticals market. Like many of its domestic rivals, Dr. Reddy’s has also been hit by US bans on Indian plants over quality control issues.
Net profit fell 38.5% to Rs303 crore in the third quarter ended 31 December 2017, below an average analyst estimate of Rs340 crore.
Revenue from the company’s generics business in North America fell 3% to Rs1607 crore. Revenue from its Europe generics business dropped 7% to Rs201 core due to pricing pressures and temporary disruptions in supply.
Dr. Reddy’s shares fell as much as 3.5% to Rs2,469 on BSE.