REUTERS - Indian generic drugmaker Dr. Reddy’s Laboratories Ltd said quarterly net profit slumped nearly 40 percent, its third consecutive quarter of declines as pricing pressures in the United States hit sales.
Indian drugmakers have faced challenges in negotiating prices as a result of consolidation among drug distributors in the United States, the world’s biggest pharmaceuticals market. Like many of its domestic rivals, Dr Reddy’s has also been hit by U.S. bans on Indian plants over quality control issues.
Net profit fell 38.5 percent to 3.03 billion rupees ($47.7 million) in the third quarter ended Dec. 31, below an average analyst estimate of 3.4 billion rupees.
Revenue from the company’s generics business in North America fell 3 percent to 16.07 billion rupees.
Revenue from its Europe generics business dropped 7 percent to 2.01 billion rupees due to pricing pressures and temporary disruptions in supply.
Dr. Reddy’s shares fell as much as 3.5 percent to 2,469 rupees in a broader Mumbai market that was trading down 0.3 percent.
($1 = 63.4900 rupees)
Reporting by Jessica Kuruthukulangara in Bengaluru; Editing by Edwina Gibbs