India-based pharmaceutical company Dr. Reddy's Laboratories Ltd. (RDY) reported Wednesday a loss for the third quarter, compared to a profit last year, reflecting mainly charges related to the carrying value of goodwill and intangibles of betapharm, its German operation. Revenues decreased 6% from last year. However, excluding revenues from sumatriptan last year, third-quarter revenues grew year-on-year driven by key markets of India and Russia.
Loss for the third quarter attributable to equity holders of the company was US$112 million or US$0.7 per share, compared to a profit of US$53 million or US$0.3 per share in the previous year. In terms of Indian Rupees, loss was INR5.22 billion or INR30.9 per share, in comparison with a profit of INR 2.44 billion or INR14.5 per share a year ago. Adjusted profit after tax was US$50 million or US$0.29 per share.
The company noted that the quarter indicated a higher pace of transition to tender based model in German generics pharmaceutical market, with an associated deterioration in prices from the prior-year levels. This resulted in the testing of impairment of the carrying value of betapharm's goodwill and intangibles, and the company recorded a non-cash write-down of intangible assets and 'beta' brand amounting to EUR 48 million and a non-cash write-down of goodwill amounting to EUR 76 million. Augsburg, Germany headquartered generic pharmaceuticals company betapharm was acquired by Dr. Reddy's in 2006.
Revenues for the quarter decreased to US$373 million from US$397 million in the same quarter a year ago. In Indian Rupee terms, revenues were INR17.3 billion, down from INR18.4 billion in the prior year.
Segment-wise, revenues from Global Generics business were US$253 million, compared to US$295 million in the prior-year quarter. Revenues from Pharmaceutical Services & Active Ingredients increased 17% to US$113 million from US$96 million in the previous year.
Results from operating activities were a loss of US$128 million, in comparison with a profit of US$81 million in the preceding year.
Cost of revenues increased to US$183 million from US$175 million in the year earlier. Total operating expenses surged to US$318 million from US$140 million in the prior year. Operating expenses for the quarter include write down of intangible assets of US$74 million and write down of goodwill totaling US$111 million.
During the quarter, the company launched 27 new generic products, filed 16 new product registrations and filed 11 DMFs globally. For the nine-month period, adjusted profit after tax was US$158 million, up from US$110 million in the same period last year. Adjusted earnings were US$0.93 per share. Consolidated revenues grew 9% year-over-year to US$1.2 billion.
RDY closed Tuesday's regular trading at $26.17 on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.