Dr Reddy’s Labs Q3 profit falls 38%, hit by US pricing pressure
Dr Reddy’s Labs net profit falls 38.5% to Rs303 crore in the third quarter ended 31 December 2017, below an average analyst estimate of Rs340 crore
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.
- Mastercard will delete Indian cardholders’ data from servers; warns of impact
- Fortis says SC order does not impact 31.1% stake sale to IHH
- NGT clears way for reopening Sterlite copper smelter; Tamil Nadu govt to move SC
- Petrol prices hiked, diesel prices slashed. Check today’s rates
- Apple to roll out new Snoopy, Peanuts cartoon series
Editor's Picks »
- Markets yet to warm up to KEC International’s record order book
- Indraprastha Gas and Mahanagar Gas shares are low on fuel
- Overhang of capacity constraints lifts for ACC, Ambuja Cements
- Stock market traders fall for the ‘buy rural’ narrative, once again
- Continuing volume momentum puts Indian ports in a good position