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Dr. Reddy's second-quarter profit soars past market estimates

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Reuters
Last Updated : Oct 26 2018 | 3:55 PM IST

(Reuters) - Dr.Reddy's Laboratories posted a better-than-expected rise in second-quarter profit as higher sales in some emerging countries offset a marginal decline in business in North America, a key market for the Indian generic drugmaker.

Dr.Reddy's net profit soared 69.7 percent to 5.18 billion rupees in the quarter ended Sept. 30, well ahead of analysts' expectations of 3.52 billion rupees, according to Refinitiv data.

Revenue in the global generics segment from emerging markets surged 36 percent to 7.49 billion rupees ($102.16 million), while domestic sales grew eight percent.

Net sales were 36.87 billion rupees, up from 34.91 billion rupees last year, the company said on Friday.

Revenue from North America fell marginally due to the absence of sales of a generic version of an opioid addiction drug, offset by a sharply weaker rupee.

British drugmaker Indivior Plc has been fighting the introduction of a cheaper copycat of its film-based blockbuster opioid addiction drug Suboxone by Reddy's Labs, while also hoping to head off competition from Teva Pharmaceuticals.

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The company's shares ended marginally higher in a broader Mumbai market, which dropped 0.9 percent.

($1 = 73.3150 Indian rupees)

(Reporting by Tanvi Mehta in Bengaluru, Editing by Sherry Jacob-Phillips)

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First Published: Oct 26 2018 | 3:49 PM IST

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