Dr Reddy’s shares plummet 4.4% in the wake of logging modest Q3 growth
The shares of Dr Reddy’s Laboratories were trading at ₹1,231.50 down by ₹57.90 or 4.49 per cent on the NSE today at 11 am.
Dr Reddy’s Laboratories reported a 2 per cent increase in net profit to ₹1,413 crore for the third quarter ended December 2024, with total revenue rising 16 per cent to ₹8,358 crore.
The Hyderabad-based pharmaceutical company attributed its growth to the newly acquired Nicotine Replacement Therapy (NRT) business, new product launches, and improved operational efficiencies. North American revenues grew marginally by 1 per cent to ₹3,380 crore, though experiencing a 9 per cent sequential decline due to price erosion and lower sales of certain products like Lenalidomide.
European revenues surged 143 per cent, bolstered by the NRT business, while emerging markets saw a 12 per cent increase, with Russia contributing a 19 per cent growth. The Indian market expanded by 14 per cent.
Key highlights include launching Toripalimab, an immuno-oncology drug for rare nasopharyngeal carcinoma, making India the third country after the US and China to access the treatment. The company also entered a voluntary licensing agreement with Gilead Sciences to manufacture an HIV treatment drug in over 120 countries.
Dr Reddy’s continues to focus on strengthening its generics and API business while investing in strategic areas like consumer health, digital therapeutics, and biosimilars. The company completed a US FDA inspection at its Hyderabad API facility, receiving a Form 483 with seven observations, which were promptly addressed.
The company also completed a share capital alteration by splitting existing ₹5 shares into five ₹1 shares.
