The never-ending rollercoaster ride of Dr. Reddy's Laboratories'
Revenues slipped 37% from the year-ago quarter, but the 2006 quarter saw large contributions from authorized generic versions of Merck's
Gross profit margins increased to 51% from 41% in the year-ago quarter, but it's nothing to get too excited about; the low level last year was due to those authorized generics that fetch low gross margins. Dr. Reddy's expects to be able to push up gross margins further as it moves manufacturing of drugs from its betapharm acquisition to lower-cost plants in India.
The company, which was rumored to be interested in acquiring U.S.-based Par Pharmaceuticals
Dr. Reddy's is continuing to expand its base of products. It launched its first over-the-counter product -- a generic version of GlaxoSmithKline's