Reuters, Hyderabad, January 30 Dr Reddy's Laboratories , an Indian pharmaceutical company, exceeded third-quarter earnings projections on Tuesday, largely due to its generic pharmaceuticals division's robust performance in important U.S. and European markets.

LSEG data shows that the Hyderabad-based company's consolidated net profit for the quarter ended December 31, which was 13.81 billion rupees ($166.17 million), an 11% increase over analysts' forecasts of 12.77 billion rupees.

The largest contribution to the total, the generics category in North America, saw its revenue increase by 9.6%, bringing the total revenue up to 72.37 billion rupees. The European and Indian segments had increases in revenue of 15.5% and 4.7%, respectively.

"We delivered another quarter of highest ever sales and robust financial performance, aided by new products performance and base business market share gain in the U.S., new products launch momentum and strong performance in Europe," GV Prasad, our managing director, stated.

A generic equivalent of Bristol Myers Squibb's cancer medication Revlimid, lentilidomide, helped the company's generics business in the United States. In 2022, Dr. Reddy's introduced the generic variant.

Nevertheless, the company reported that "price erosion" in some countries has somewhat offset revenue increases in the generics division.

Drug prices have been falling as a result of pricing pressures faced by Indian generic drugmakers, the majority of whose sales come from the United States.