* Net more than doubles to 2.17 bln rupees vs 1.05 year ago
* North America revenue rises 39 pct on new launches
* Europe sales drop 15 pct in Q2, German unit weighs
* Shares rise more than 6 pct in flat Mumbai market (Adds details)
BANGALORE, Oct 23 (Reuters) - Indian drug maker Dr Reddy's Laboratories Ltd REDY.BO said on Friday quarterly profits doubled from a year ago helped by the launch of new generics abroad, beating forecast and sending its shares higher.
Global demand for generic drugs from companies such as Dr Reddy's and domestic rivals Ranbaxy Laboratories RANB.BO and Cipla Ltd CIPL.BO is booming as nations around the world battle rising healthcare costs.
Dr Reddy's plans to launch six to seven new generics in the U.S. in fiscal 2009/10 including blockbuster omeprazole, a generic version of AstraZeneca's AZN.L Prilosec for treating stomach ulcers and acid reflux. [ID:nBOM539118] Last year, the New York-listed company RDY.N launched acute migraine drug sumatriptan, a generic of GlaxoSmithKline's GSK.L Imitrex, in the U.S. market.
Dr Reddy’s reported a net profit of 2.17 billion rupees ($47 million) in July-September, its fiscal second quarter, compared with 1.05 billion rupees posted a year ago, under international accounting standards.
A Reuters survey of eight brokerages had forecast average net profit at 1.96 billion rupees.
Under the India accounting standards, quarterly net profit nearly tripled to 2.4 billion rupees.
Shares in Dr Reddy's, which the market values at $3.3 billion, were up 5.3 percent at 952.20 rupees at 0857 GMT in the main Mumbai market .BSESN that was up 0.2 percent. The stock had surged as much as 6.4 percent earlier today.
Dr Reddy’s said its U.S. revenues grew 39 percent in the quarter ended September to 4.3 billion rupees, while European sales dropped 15 percent to 2.8 billion rupees weighed down by its German subsidiary. The company’s wholly-owned German unit Betapharm, which Dr Reddy’s bought in 2006 for $572 million, has been a drag on its earnings due to supply constraints and falling prices.
Betapharm has started supplying drugs to German health insurer Allgemeine Ortskrankenkasse (AOK) under contracts won in December, and Dr Reddy’s said that the unit continues to face pricing pressure in Germany. (Reporting by Sumeet Chatterjee, additional reporting by Janaki Krishnan; Editing by Malini Menon)
Our Standards: The Thomson Reuters Trust Principles.