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Dr Reddy’s Posts Surprise Q3 Loss But Strong Operating Results Boost Shares

Main Markets Strong But Compliance Issues Linger

 
• By Penelope MacRae

Dr Reddy’s Laboratories reported an unexpected third-quarter consolidated net loss after taking a $156m charge for its generic NuvaRing contraceptive but the company’s shares jumped on a robust underlying performance that analysts praised as a "great set of numbers."

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Strong Earnings For India's DRL • Source: Shutterstock

Dr. Reddy's Laboratories Ltd., India’s second-largest drug company, plunged unexpectedly into the red in the third financial quarter, hit by a $156.5m write-off for its generic NuvaRing (etonorgestrel/ethinyl estradiol) contraceptive. But a strong underlying performance, reflecting a string of US launches and a tight rein on costs, propelled the company’s shares to a 52-week high.

The company, which has been grappling with US regulatory compliance issues and falling product prices in the US, crashed to a INR5.7bn ($79.7m) net loss in the October-December period from a profit of INR4

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