Dr Reddy's Proprietary Products Gain US Traction Amid Tough Q2
Early traction for its differentiated neurology and dermatology formulations in the US and signs of ebbing volatility in emerging markets bode well for Dr Reddy's Laboratories, amid a sharp decline in second quarter profits on a year-on-year basis. Investors also have their eyes firmly set on progress of the firm's key generic opportunities for Copaxone, Aloxi and Gleevec in the US.
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Dr. Reddy’s Laboratories (DRL) has reported a slump in profits for the first quarter, dented by a decline in volume growth and pricing pressure in the US as well as a loss of business in Venezuela. While the firm's long term story appears intact, resolution of compliance issues at its Indian sites and product flows in the US and other markets (DRL expects to participate in a Russian tender for rituximab) could lift investor sentiment significantly.
Indian generic drug giant Dr. Reddy’s says the crash of currencies in some emerging markets may impact earnings as it reported a tough third-quarter in which net profit was sharply below market expectations.