Dr. Reddy's Q3 earnings flat despite FDA woes
- For the third quarter which ended December 2015, India-based Dr. Reddy's posted a net profit of Rs. 579.20 crore (about $85 million), on a consolidated basis, compared to the Rs. 574.50 crore for Q3 2014.
- Net income was Rs. 3,967.9 crore (about $584 million)—a 3% increase year-over-year.
- The growth was modest, and pretty much all of it was is attributable to generics sales. On the downside, however, Dr. Reddy's has been losing money at its Venezuelan plant as economic conditions in that country deteriorate.
Right now, Dr. Reddy's is facing tremendous pressure from the FDA to remediate numerous problems at its manufacturing facilities that were identified during inspections.
Dr.Reddy’s has had major compliance problems with cGMP at its API manufacturing facilities in Srikakulam, Andhra Pradesh and Miryalguda in Telangana, and its oncology formulation manufacturing facility at Duvvada, Vishkhapatnam.
According to a report from The Hindu, the CEO of Dr. Reddy's, G.V. Prasad, said, "Enhancing our quality management and meeting the USFDA expectations continues to be our highest priority."
- The Hindu Dr. Reddy's Laboratories Q3 net flat