Comments
Pharma major Dr Reddy’s Laboratories Ltd’s consolidated net profit inched up 1 per cent to ₹579 crore in the third quarter ended December 2015 from ₹574 crore in the corresponding quarter of the previous year.
The revenue of the Hyderabad-based company increased 3 per cent to ₹3,968 crore (₹3,843 crore). “The adverse macro economic conditions across key emerging market territories, such as depreciation of the rouble, and calibrated sales in Venezuela impacted the performance,’’ Saumen Chakraborty, President and Chief Financial Officer of Dr Reddy’s told newspersons at a press conference here on Tuesday.
While revenue from North America in the global generics segment grew by 18 per cent due to a sustained performance by the injectables franchise, income from emerging markets declined by 28 per cent.
A 34 per cent growth in revenue from the domestic market and 14 per cent increase in sales in Europe, however, helped the company during the quarter under review.
Selling, general and administrative expenses rose 8 per cent largely due to the ongoing remediation activities related to the USFDA observations and warning letter and ongoing patent litigation with Novartis on zoledronic acid, among others.
“Our top priority is mediation and mitigation measures after we submitted our response to the US FDA’s warning letter on December 7, 2015,’’ he said.
An update has also been sent to the regulator, which has not responded till date. “After one more response, we will try to engage with them,’’ said Abhijit Mukherjee, Chief Operating Officer.
The company had earlier hired a third-party consultant to deal with the issue.
In November, 2015, the US regulator had issued a warning letter to Dr Reddy’s on its API (active pharmaceutical ingredient) manufacturing facilities in Srikakulam, Andhra Pradesh and Miryalaguda, Telangana, as well as an oncology formulation manufacturing facility at Duvvada, Visakhapatnam, Andhra Pradesh.
On Tuesday, the Dr Reddy’s scrip lost 3.61 per cent to close at ₹2,959.65 on the BSE.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.