Indian drugmaker Dr Reddy's misses Q3 profit view on weak pricing in US
Indian generic drugmaker Dr Reddy's Laboratories reported third-quarter profit below expectations on Thursday, hurt by pricing pressure in the competitive North American market, their biggest revenue segment.
The company reported a 2.3% rise in its consolidated net profit at 14.14 billion rupees ($163.7 million) for the quarter ended Dec. 31, missing analysts' average estimate of 14.89 billion rupees, as per data compiled by LSEG.
Indian generic drugmakers have been struggling with sales slowdown in the U.S. due to delayed approvals for new drug applications, lower pricing amid stiff competition and increased inspections at manufacturing facilities by the Food and Drug Administration, according to analysts.
Revenue from North America saw a stunted rise of just 1% to 33.80 billion rupees, from last year. The volume growth, led by new product launches, was offset by price erosion, the company said in a statement.
"The sequential decline was largely on account of lower sales of certain products including Lenalidomide," Dr Reddy's said.
Lenalidomide, a major contributor to Reddy's North America sales since 2022, is a generic version of Bristol-Myers Squibb's popular cancer treatment drug Revlimid.
Reddy's total revenue climbed 16% to 83.81 billion rupees during the December quarter, higher than analysts' estimate of a 12% climb. Revenue was boosted by a 14% growth in its India sales to 13.50 billion rupees.
The growth was also aided by revenue from the in-licensed vaccine portfolio, the company said. Last year, Reddy's partnered with French drugmaker Sanofi for distribution of its vaccines in India.
($1 = 86.3980 Indian rupees)
