Dr Reddy's falls to loss on goodwill adjustment
India-based generics major Dr Reddy's Laboratories has fallen into loss for the 12 months to March 31, 2009, despite a 49%, year-on-year rise in turnover, due to a goodwill adjustment for impairment.
Sales were $390.0 million versus $261.0 million, mainly due to the launch of a generic version of UK drug major GlaxoSmithKline's Imitrex (sumatriptan) for the treatment of migraine. Without the product, the firm says sales would have grown by 24%. R&D expenses were $22.0 million, up 10%.
The firm's loss was $192.0 million, or $1.10 per share, versus a net income of $18.0 million, or $0.10 per share. The loss was due to a 3.2 million-rupee ($67,520) write down related to an adjustment of goodwill for the company's German subsidiary Betapharm because of impairment. The firm acquired the subsidiary in February 2006. As of the end of the financial year, Dr Reddy's had $110.0 million in cash and cash equivalents, down 25% on the same point of last year.
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