Dr Reddy's says plans to launch 26 GLP-1 pdts in 10 yrs; Semaglutide key pdt
This story was originally published at 19:56 IST on 23 July 2025
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--Dr Reddy's: Price erosion in US for select pdts including Revlimid in Q1
--CONTEXT: Dr Reddy's mgmt comments at a post-earnings press conference
--Dr Reddy's: Price erosion, changing US landscape weigh on growth
--Dr Reddy's: Net cash surplus as of Jun. 30 at INR 29.22 bln
--Dr Reddy's: Nicotine pdts, new launches helped Europe ops growth Apr-Jun
--Dr Reddy's: Pdt launches, price hikes helped India Apr-Jun sales growth
--Dr Reddy's: Saw price erosion in Europe markets in Apr-Jun
--Dr Reddy's: Nicotine pdts sales performance in line with expectations
--Dr Reddy's: Nicotine pdts portfolio integration completed
--Dr Reddy's: Higher R&D spending due to focus on GLP-1 peptide pdts
--Dr Reddy's: R&D spending for Apr-Jun 7.3% of sales
--Dr Reddy's: Fall in US generics revenue in Apr-Jun was anticipated
--Dr Reddy's: Capex seen around INR 27 billion for FY26
--Dr Reddy's: Large part of FY26 capex is on peptides
--Dr Reddy's: Vaccines, consumer health pdts to drive India FY26 growth
--Dr Reddy's: Planning to launch semaglutide in 87 countries in 2026
--Dr Reddy's: Clarity on US tariffs on pharma key issue for next few qtrs
--Dr Reddy's: Semaglutide launch is important for co's future growth
--Dr Reddy's: Revenue growth seen in double digit in FY26
--Dr Reddy's: Will continue to see EBITDA margin 25% and above in FY26
--Dr Reddy's: Working on launching 26 pdts under GLP-1 category across mkts
By Narayana Krishna and Simran Rede
HYDERABAD/MUMBAI - Dr. Reddy's Laboratories Ltd. is gearing up to launch 26 products in GLP-1 (glucagon-like peptide-1) category in the next 10 years and the first one will be the generic of Semaglutide, a key product scheduled for launch by January 2026, the company's management said in a post-earnings press conference on Wednesday. GLP-1 category drugs are used to treat diabetics and obesity and the category has several products, for which the patents are set to expire 2026 onwards.
The pharmaceuticals major's consolidated net profit for the June quarter rose nearly 2% on year to INR 14.18 billion, lower than the INR 15.5 billion expected by analysts. Its revenue was up 11% on year at INR 85.72 billion, which also missed the Street's estimate of INR 87.4 billion.
The company's management said Semaglutide is the key drug the company is pinning hope to drive growth and the company is planning to launch the product in at least 87 countries starting in January. The company said countries such as Canada, India, Brazil, and Turkey were the primary target for the launch. The management said litigations around Semaglutide are not going to hurt the launch plan and the company is in the process of completing regulatory filings with several countries to obtain approval.
Dr. Reddy's said higher spending on research and development during Apr-Jun is due to its focused approach on GLP-1 and other peptide products. Dr. Reddy's reported its R&D spending at 7.3% of its total sales for the June quarter. The company said its capital expenditure for 2025-26 (Apr-Mar) is seen around INR 27 billion and most of it will go into creating new capacities for peptide opportunities.
GROWTH AIM
Dr. Reddy's maintained that the company is aiming for double-digit growth in FY26 with maintaining its earnings before interest, tax, deprecation and amortisation margins above 25% levels. For the June quarter, the company reported its EBITDA margin at 26.7% against 28.2% a year ago. The fall in margins is due to price erosion in the US, mainly in some speciality products, including the cancer drug generic Revlimid.
Dr. Reddy's management said the price erosion was anticipated due to increased competition in the US for Revlimid, while the impact of this price erosion on the base business is not higher and is similar to earlier quarters. Price erosion and tariff threats are weighing on sales growth in the US, the management said, adding that clarity on the US tariff structure on the pharmaceutical sector is the key thing to watch for the next few quarters.
In India, the company is pinning hopes on Sanofi's acquired vaccine portfolio and consumer health products are likely to drive the growth in coming quarters. For the June quarter, Dr. Reddy's reported 11% sales growth in the domestic market, reaching the top-10 company's spot, led by new launches and price hikes.
NRT HELPS IN EUROPE
Though Europe saw price erosion, the Nicotine Replacement Therapy products helped the company to report robust growth. Integration of the nicotine products portfolio with the company's sales channels across Europe is completed and sales are in expected lines, the company said.
Contribution from the Nicotine products was INR 6.7 billion for the June quarter. Dr. Reddy's is expecting similar sales for these categories of products going forward. The nicotine product's contribution will be a long-term one and pricing will also be stable in this segment, the company said. As of Jun. 30, Dr. Reddy's reported a cash surplus of INR 29.22 billion.
In China, the company is working on opportunities to participate in government procurement programs and it is expecting traction from FY27 onwards. The company is focused on oncology-related products in China, the company said.
On Wednesday, shares of the company closed at INR 1,247.40 on the National Stock Exchange, up 0.6% from the previous close. The company disclosed its June quarter earnings post market hours Wednesday. End
US$1 = INR 86.4075
Edited by Deepshikha Bhardwaj
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