Financial troubles have put Dr. Reddy’s Laboratories’ (RDY) growth strategy on the backburner.

After suffering a write-off of EUR 210 million ($290 million) on intangible assets and goodwill related to its Betapharm Arzneimittel acquisition in 2006, Reddy’s posted a loss of $102 million for the year ended March 31.

Reddy’s has now put further buyout/acquisition plans to rest (for now) and says it’s going after “differentiated drugs difficult to make but likely to turn in more profits.”

Reddy’s COO Satish Reddy said this:

“It was all about the growth story in the past. What we’re now saying is that we want consistent growth on revenue and profits. Over the next one-and-a-half years, we don’t intend to pursue [merger-and-acquisition-led] growth. In the markets where we’re present, we already have a critical size, so we don’t need to invest any further by acquiring. The focus is on deepening the presence.”

Reddy’s, which focuses mostly on generic drugs, stands to benefit in the U.S. under the Obama administration’s healthcare legislation that promises to increase demand for generics.

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