Dr. Reddy's Q1 Net Profit Plunges 69% on Lower Lenalidomide Sales and Semaglutide Quality Provision
Dr. Reddy's Laboratories reported a 69% year-on-year decline in consolidated net profit to ₹435.6 crore for the June quarter, driven by lower sales of its cancer drug lenalidomide and a ₹239.7 crore provision related to a quality issue with its weight-loss drug Semaglutide. Total revenue fell to ₹8,099.8 crore from ₹8,572.1 crore. The company noted that certain batches of Semaglutide were found out of specification due to an API issue, leading to the provision. Despite these headwinds, the underlying base business (excluding lenalidomide) delivered double-digit growth across key geographies, aided by favorable currency movements. Co-chairman G V Prasad emphasized disciplined execution and a focus on building a future pipeline of peptides, biosimilars, and innovative assets. Gross margins were also impacted by adverse product mix, price erosion in North America and Europe, and elevated solvent and freight costs due to the Middle East crisis.
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