MGDDY Michelin Compagnie Generale Des Etablissements Michelin (PK)

DENALI

Dell Parent Posts Drop In First-Quarter Sales

Dell Inc.'s parent company, Denali Holdings, on Friday posted fiscal first-quarter sales that fell from a year earlier as the company is in the midst of closing its deal to buy EMC Corp.

Sales slipped 2.4% from a year earlier, to $12.53 billion, driven by a decline in revenue from the company's client and enterprise groups, and flat Dell software sales. The company had forecast revenue of $13.2 billion last month and lowered its estimate recently.

Dell in October unveiled a cash-and-stock deal to buy data-storage company EMC in what is the biggest merger to date in the technology industry. This past Wednesday, The Wall Street Journal reported Dell was set to sell $3.25 billion in debt as part of its effort to finance the transaction.

In its latest quarter, Denali booked $90 million in costs classified as "other corporate expenses," a bucket that includes merger-and-acquisition-related charges. That was up from $36 million a year earlier.

Denali, based in Round Rock, Texas, posted an operating loss of $161 million for the quarter ended April 30, an improvement from last year's loss of $335 million. In May, the company predicted an operating loss of $100 million but said recently the loss would be wider.

The company said in March it would sell its information-technology-services unit for about $3.1 billion.

Because of a $481 million gain from discontinued operations, Denali reported an overall adjusted profit of $55 million. A year earlier, the company posted a loss of $504 million.

--Lisa Beilfuss

Dr. Reddy's

India Drugmaker In Deal With Teva

India's Dr. Reddy's Laboratories said it agreed to buy eight drugs from Israel's Teva Pharmaceutical Industries Ltd. for $350 million, as the Indian drugmaker seeks to gain a foothold in the U.S. market by selling more sophisticated treatments.

"The transaction will add strength to our product portfolio, help us be more relevant in our U.S. market and create new opportunities for growth, " G.V. Prasad, chief executive of Dr. Reddy's said in a statement.

The medicines are "complex generic products," Dr. Reddy's said Saturday in a regulatory filing.

One of the treatments has U.S. Food and Drug Administration approval already, according to a spokesman for Dr. Reddy's. The others are still awaiting approval.

Mr. Printer declined to offer details on the drugs, citing "mutual privileges and confidentialities" between buyer and seller.

Teva is selling the drugs to Dr. Reddy's as part of its planned $4.2 billion acquisition of Allergan PLC's generics business.

The U.S. Federal Trade Commission has yet to approve the purchase of the drugs, which India's second-largest drugmaker by sales said is contingent on the completion of the Israeli company's deal with Allergan.

The U.S. is a key market for Indian generic drugmakers.

Indian firms are spending at an unprecedented rate to develop new drugs that will give them a leg up from the highly competitive and increasingly commoditized generics market. Dr. Reddy's spent $253 million in 2015 on research and development, up 33% from a year earlier.

--Suryatapa Bhattacharya

(END) Dow Jones Newswires

June 13, 2016 02:50 ET (06:50 GMT)

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