Dr Reddy's says to start GLP-1 product launch in FY26, US launch from 2032
This story was originally published at 20:18 IST on 23 January 2025
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--Dr Reddy's: Looks to launch GLP-1 pdts in US after 2032
--Dr Reddy's: Plan to launch GLP-1 products in Canada, emerging markets
--Dr Reddy's: Capex high due to investment on GLP-1 portfolio
--Dr Reddy's: Price erosion in US similar to previous quarters
--Dr Reddy's: Sequential decline in Revlimid sales in Oct-Dec
--Dr Reddy's: Continue to upscale commercial, R&D capabilities
--Dr Reddy's: Emerging mkt sales growth continued in double digits Oct-Dec
--Dr Reddy's: New launches, higher volume drove growth in Oct-Dec
--Dr Reddy's: Expect Rituximab launch in Europe Oct-Dec FY26
--Dr Reddy's: Expecting incentives for R&D investments in upcoming Budget
--Dr Reddy's: Plan to launch 15-20 new pdts in US in FY26
--Dr Reddy's: Got China regulator OK for 12 products in FY25
--CONTEXT: Dr Reddy's mgmt comments in post-earnings press conference
By Narayana Krishna and Anjana Antony
HYDERABAD/MUMBAI - Dr. Reddy's Laboratories Ltd. is preparing to launch its GLP-1 portfolio of products across various regions from 2025-26 (Apr-Mar) onwards, with investments underway to meet the anticipated demand, the company's management said at a post-earnings press conference.
GLP-1, or glucagon-like peptide-1, is a hormone that helps regulate blood sugar levels. Semaglutide, one of the drugs in the GLP-1 portfolio, mimics the action of GLP-1 and is used to treat type-2 diabetes and obesity. Several pharmaceutical companies are developing their versions of GLP-1 products to capitalise on the opportunity as many patents in the segment are set to expire in 2026.
Dr. Reddy's management indicated plans to launch GLP-1 products in India, Canada, and 80 other emerging markets during FY26-FY27. The US launch of this portfolio is expected around 2032. The Hyderabad-based drugmaker has also increased its capital expenditure to expand capacities for this purpose.
The drugmaker's consolidated net profit for the December quarter rose 2.4% on year to INR 14.14 billion, missing the Street estimate of INR 14.7 billion. The company's revenue for the quarter was INR 83.81 billion, up 15.8% from a year ago.
Dr. Reddy's said pricing erosion in the US is at similar levels as previous quarters and there was no change in the trend. Dr. Reddy's reported a 1% on-year growth in its US sales at INR 33.8 billion in Oct-Dec and the muted growth was mainly on account of price erosion. The company also witnessed a sequential decline in generic Revlimid sales, which had contributed significantly for the last few quarters.
Dr. Reddy's is expecting 15-20 new product launches in the US in FY26, which may drive the growth in the region, which contributes around 50% to its total sales.
Dr. Reddy's management said the company is expecting to launch its biosimilar products, including Rituximab, around Oct-Dec of FY26 as the European regulatory agency takes 14-16 months to give approvals. The company has received regulatory approval for 12 products in China during the current financial year and this approval cycle will continue in coming years too, the management said.
Dr Reddy's management said it was confident of maintaining its earnings before interest, tax, depreciation and amortisation margins at over 25% levels in coming quarters too. New launches and higher volumes in some products helped to drive EBITDA growth in Oct-Dec. Growth in emerging markets sales also continued in double digit for the quarter, the company said.
The company expects the government to give incentives on investments made in R&D by the pharmaceutical industry in the Union Budget, the management said. On Thursday, the company's shares closed 0.5% lower at INR 1289.40 on the National Stock Exchange. Dr. Reddy's announced its quarterly results after market hours. End
Edited by Saji George Titus
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