Pharma major Dr Reddy's Laboratories Ltd has posted a consolidated net profit of Rs 273 crore in the third quarter ended December 31, 2010.
The Hyderabad-based company had suffered a loss of Rs 521.7 crore in the year-ago period.
“The quarter was relatively good though overall growth was less than expected on account of delayed launch of limited competition products in the US market,'' Mr G.V. Prasad, Vice-Chairman and CEO of Dr Reddy's, told newspersons here on Tuesday.
The growth in net profit and a 10 per cent increase in total revenue (at Rs 1,898 crore) were driven by a 16 per cent growth in the sale of generics in North America.
While revenues from Russia, Europe other than Germany, and India grew, earnings from Germany had dipped 33 per cent at Rs 138 crore due to price erosion and “disappointing” results from AOK tenders, Mr Satish Reddy, Managing Director, said.
The CIS markets and pharmaceutical services segments had also shown negative growth.
The operating expenses grew 17 per cent on account of refinancing of €120-million Betapharm loan by a dollar loan of $110 million for a year, expansion/campaign for over-the-counter business in Russia and doubling of field staff to 3,000 from 1,500 in India. The earnings per share stood at Rs 16.1.
Dr Reddy's scrip declined 3.15 per cent on the BSE on Tuesday to end at Rs 1,584.10.
The company had also settled two litigations with AstraZeneca in the US on the Abbreviated New Drug Application (ANDA) of Nexium (esomeprazol) and Accolate (Zafirlukast).
“This will allows us to launch generic version of esomeprazol on May 27, 2014, or earlier in certain circumstances besides allowing to continue to sell Zafirlukast without any risk,'' Mr Prasad said.
The company is “hopeful” of launching two limited competition products (Fondaparinux and Fexofenadne pseudoephedrix) soon.
“We will also be launching our fourth biosimilar in the domestic market in the current quarter,'' Mr Prasad said.