Dr Reddy's sees 850M Rs loss in Q3 of FY 2008

Indian generics giant Dr Reddy's Laboratories says that a 2.36 billion-rupee ($59.9 million) write-down of intangible assets associated with its German Betapharm subsidiary, acquired in 2006 (Marketletters passim), had a marked impact on the third quarter of its fiscal year 2008, ended December, 2007. The firm swung into a net loss for the period of 846.6 million rupees from the 1.87 billion rupees it earned in the previous fiscal year.

Dr Reddy's explained that ongoing upheaval in Germany's generic drug market, where its quarterly turnover fell 23% to 2.0 billion rupees, was behind its decision to increase output at its Indian manufacturing operations in order improve its margins. The firm added that, by this summer, it hopes to increase the proportion of products shipped to Germany, including both simvastatin and omeprazole, from 60% to 80%.