Dr. Reddy’s Laboratories said its net profit for the December quarter was down by 19% to Rs. 470 crore (as per IFRS) against Rs. 579 crore during the corresponding quarter in FY16 owing to drop in North American sales.
Saumen Chakraborty, President, CFO and Global Head of HR said revenues for Q3 FY17 dropped by 7% to Rs. 3,707 crore against Rs. 3,968 crore in Q3 of FY16.
Generic sales from North America registered a drop of 15% to Rs. 1,660 crore during the October-December quarter resulting in a drop of 9% over generic sales globally, he said.
Abhijit Mukherjee, Chief Operating Officer of DRL said the growth story in U.S. is muted due to pricing pressures and no big launches.
“Launches in (in North America) have been lean. So going ahead we see the pipeline building well. The decline is also primarily on account of increased competition in Valgancyclovir and our injectable franchise coupled with continuing pricing pressure,” Mr. Mukherjee said.
He said sales from India did not grow much due to demonetisation of higher value currency notes.
“Demonetisation has its impact. The industry itself has not done well, so we were also impacted. But the situation is coming back to normal during this quarter,” Mr. Mukherjee added.
Revenues from India stood at Rs. 590 crore in Q3 with 2.4% growth over same quarter last year.
Replying to a query, Mr. Mukherjee said they expect the USFDA to inspect their three plants which were earlier issued warning letters before March