Dr. Reddy's fiscal 3Q profit sinks 26 percent
Drugmaker Dr. Reddy's Laboratories Ltd. said Thursday its fiscal third-quarter earnings fell 26 percent compared to the same quarter last year, when a generic version of the antipsychotic Zyprexa boosted its North American sales.
The Indian company reported net income of $69 million, or 40 cents per share, in the three months that ended Dec. 31. That compares to $94 million, or 50 cents per share, in the prior year's quarter. Revenue rose 3 percent to $522 million. The currency figures are based on a conversion rate of one U.S. dollar equaling 54.86 Indian rupees.
Analysts surveyed by FactSet expected, on average, earnings of 49 cents per share on $540.7 million in revenue.
Its shares fell 99 cents, or 2.8 percent, to $34.77 in late morning trading.
Eli Lilly and Co. lost U.S. patent protection for Zyprexa in late 2011, and Dr. Reddy's has said that its North American sales more than doubled to $242 million in its fiscal 2012 third quarter due to the launch of Zyprexa's generic equivalent, olanzapine.
Dr. Reddy's and Israeli-based Teva Pharmaceutical Industries were the first companies to launch generic versions of Zyprexa in the U.S. market, and they had six months of marketing exclusivity. That helped Dr. Reddy's earnings soar 87 percent in its fiscal 2012 third quarter.
Dr. Reddy's also said its selling, general and administrative expenses climbed 12 percent to $156 million in the quarter, and research and development costs rose 34 percent to $37 million in the most recent fiscal third quarter.
The company's results were reported under International Financial Reporting Standards.