UPDATE 1-Dr Reddy’s Q1 consol net falls on lower U.S. sales

* Q1 profit at 2.1 bln rupees vs 2.19 consensus estimates

* North America sales down 35 pct, Europe falls 9.5 pct

* Shares end 1.7 pct lower in a firm market
(Recasts lead, adds details)

BANGALORE, July 22 (BestGrowthStock) – Dr Reddy’s Laboratories Ltd
(REDY.BO: ), India’s No. 2 drugmaker by sales, said on Thursday
consolidated quarterly profit fell more-than-expected 14.3
percent following a drop in sales in its key U.S. market.

The New York-listed company (RDY.N: ) reported a consolidated
net profit of 2.1 billion rupees ($44.5 million) in its fiscal
first quarter ended June, down from 2.45 billion rupees a year
earlier, under international accounting standards.

Revenue fell 7.5 percent to 16.83 billion rupees, as sales
in North America, its biggest export market, fell 35 percent to
3.9 billion rupees and European revenue dipped 9.5 percent to
1.9 billion rupees.

A Reuters poll of brokerages had estimated quarterly profit
at 2.19 billion rupees on revenue of 17.91 billion rupees.

The company’s shares, valued at about $5 billion, ended
down 1.7 percent at 1,380.60 rupees in a firm Mumbai market.

Earlier, Dr Reddy’s said standalone net profit under Indian
accounting standards rose 7.5 percent to 2.44 billion rupees.
Dr. Reddy’s 180-day exclusive marketing deal in the United
States for acute migraine drug sumatriptan, a generic of
GlaxoSmithKline’s (GSK.L: ) Imitrex, had ended in August last
year hurting its sales.

The company’s German unit Betapharm, which it bought in
2006 for $572 million, has been a drag on its earnings due to
regulatory issues. Dr Reddy’s has been trying to turnaround the
unit, on which it took a hefty write off last fiscal year.

Shares in the company have risen by 21 percent this year,
outpacing the 13 percent rise in the sector index (.BSEHC: ) and
the 3.7 percent rise in the main index (.BSESN: ).
($1= 47.2 rupees)

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(Reporting by Bharghavi Nagaraju; Editing by Ranjit

UPDATE 1-Dr Reddy’s Q1 consol net falls on lower U.S. sales