Dr Reddy's Laboratories (NYSE:RDY) saw its shares plummet 5.41% during intraday trading on Wednesday, as the stock was hit by disappointing quarterly results and broader sector concerns over proposed U.S. tariffs on generic medicines.
The pharmaceutical company reported first-quarter earnings that significantly missed analyst estimates, with EPS of $0.06 falling 64.71% below the $0.17 consensus. Quarterly sales of $853 million also missed expectations by 7.84% and represented a 14.44% decrease from the same period last year.
Compounding the company-specific issues, shares in generic-drug makers across Asia and Europe declined after former President Donald Trump announced plans to impose a 100% tariff on such drugs starting in August 2028. Analysts noted the plan would hit predominantly China and India, where most generic drugs are manufactured, putting pressure on companies like Dr Reddy's that operate on thinner margins.
Comments