India's Dr. Reddy's Reports 8% Fourth-Quarter Revenue Decline

Indian generic drugmaker Dr. Reddy's has reported interim results for the fourth quarter of 2004, with revenue declining 8% year-on-year to INR4.7bn (US$107.61mn). A similar fall was recorded in overseas sales, which accounted for about 68% of the company's overall revenues in the period. Net income declined from INR593mn (US$13.55mn) in the third quarter to INR40mn (US$0.91mn) in 4Q04.

The results, while far from encouraging, are in line with recent results announced by many Indian drugmakers, which have invested heavily in R&D in recent months. Meanwhile, Dr. Reddy's claims to have 39 pending ANDAs, as well as 63 drug master files lodged with the US FDA, and more than 30 projects under development. Nevertheless, it remains to be seen whether the company's drive to boost its research activities will bear fruit.