DRL net up at Rs 273 crore on strong generic sales in US
HYDERABAD: Dr Reddy's Laboratories swung to profit for the quarter ended December 2010. Its third quarter net profit rose to Rs 273.2 crore against a net loss of 521.7 crore in the same quarter previous year.
The company recorded a 9.7% increase in revenues, from Rs 1,729.6 crore in the previous year to Rs 1,898.5 crore, on account of a growth in sales of the generic segment, especially in the US. During the quarter, the company launched 42 generic products and filed 21 new product registrations globally. It entered into two settlement agreements with AstraZeneca in the US related to abbreviated new drug application filed for generic versions of Nexium (esomeprazole) and Accolate (zafirlukast).
The stock, however, fell 3.15% to Rs 1,584.1 on BSE on Tuesday. "The company's profit was lower than expectations due to higher selling, general and administration (SG&A) expenses including litigation costs in the US. The German market continues to be a drag on its sales. This time, CIS countries have also showed degrowth," said Rahul Sharma, senior analyst (pharma), Karvy Stock Broking.
The company recorded a 9.7% increase in revenues, from Rs 1,729.6 crore in the previous year to Rs 1,898.5 crore, on account of a growth in sales of the generic segment, especially in the US. During the quarter, the company launched 42 generic products and filed 21 new product registrations globally. It entered into two settlement agreements with AstraZeneca in the US related to abbreviated new drug application filed for generic versions of Nexium (esomeprazole) and Accolate (zafirlukast).
The stock, however, fell 3.15% to Rs 1,584.1 on BSE on Tuesday. "The company's profit was lower than expectations due to higher selling, general and administration (SG&A) expenses including litigation costs in the US. The German market continues to be a drag on its sales. This time, CIS countries have also showed degrowth," said Rahul Sharma, senior analyst (pharma), Karvy Stock Broking.
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