Dr Reddy’s Laboratories (DRL) suffered a 68% fall in Q4 net profit

Dr Reddy’s Laboratories (DRL) suffered a 68% fall in Q4 net profit ended March 2008, after writing down the intangible value of the products of its buyouts in Mexico and Germany, besides products in Spain. Fall in the revenues from generic drugs and pricing pressures from the US and Germany also pulled down revenues for the quarter by 15% year on year.

Net profit fell to Rs 102.8 crore in Q4FY08 from Rs 325.2 crore in the corresponding period of FY07 when it was aided by 180-day exclusivity for the generic version of a drug Zofran. In the period under review, revenues dropped to Rs 1,325.2 crore from Rs 1,557.3 crore. DRL is targeting a revenue growth of 25% in this fiscal. The focus will be to strengthen its global generics business in US and Europe, to build on the momentum in Active Pharma Ingredients and Organic Custom Pharma Services (CPS) business, and accelerate pipeline development and infrastructure in the innovation business.