Dr Reddy’s Laboratories profits drop 60%

pharmafile | October 25, 2016 | News story | Manufacturing and Production, Sales and Marketing Dr Reddy's Laboratories 

Indian pharmaceutical firm Dr Reddy’s Laboratories has suffered a drop of 60.12% in consolidated net profit for the September quarter.

Profits have dropped from Rs 77.47 crore to Rs 30.89 crore year on year.  The company’s total income from operation on consolidated basis was down 10.05 % to Rs 361.63 crore as against Rs 402.07 crore in the same period last year. Dropping sales in Venezuela and North America and increased market competition are cited as reasons behind the poor performance.

“Gross profit margin declined by 56 % … primarily on account of lower sales due to increased competitive intensity in some of our key molecules in the US,” the company said. “Revenues from global generic segment was at Rs 29 billion, year-on-year decline of 12 %; decrease primarily on account of lower contribution from North America and loss of sales from Venezuela.”

Co-chairman and CEO G V Prasad commented: “All major businesses have shown sequential improvement over the previous quarter with revenues up 11 % and EBITDA 61 %. We have made progress on remediation efforts and continue to work on addressing concerns of the regulator.”

Matt Fellows

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