Analyst Concall
Dr Reddy's says Revlimid sales to fall by Q3; Q2 sales unch
This story was originally published at 22:10 IST on 23 July 2025
Register to read our real-time news.Informist, Wednesday, Jul. 23, 2025
Please click here to read all liners published on this story
--Dr Reddy's: FY26 R&D spend seen around 7.0-7.5% of sales
--CONTEXT: Dr Reddy's mgmt comments in post-earnings analyst call
--Dr Reddy's: Continue to invest on complex generics, biosimilars, APIs
--Dr Reddy's: Actively exploring partnerships, acquisitions
--Dr Reddy's: Jul-Sept Revlimid sales in US seen similar to Apr-Jun
--Dr Reddy's: May see less sales of Revlimid Oct-Dec onwards
--Dr Reddy's: Semaglutide launch to decide FY27 margin trend
--Dr Reddy's: Plan to launch generic Liraglutide in coming qrts across mkts
--Dr Reddy's: Expecting production linked incentives over FY27-FY28
By Narayana Krishna and Simran Rede
HYDERABAD/MUMBAI - After gaining significant revenue and profits since September 2023 from its generic version of Revlimid in the US, Dr. Reddy's Laboratories Ltd. is expecting a slowdown in sales of the blockbuster drug from the December quarter, the company's management said in a post-earnings conference call.
Dr. Reddy's Laboratories began benefiting from US sales of the generic version of Revlimid from the September quarter of 2022-23 (Apr-Mar), following its launch under 180-day marketing exclusivity for the 2.5 milligrams and 20 milligrams strengths. This marked a major milestone, with Revlimid quickly emerging as a key growth driver in the company's North America generics business.
After the contribution from Revlimid for 14 consecutive quarters, under a volume-limited settlement agreement with Bristol Myers Squibb, the company booked a significant fall in sales of the product in the June quarter, reflecting on its US sales. Dr. Reddy's North America sales declined by 11% on year to INR 34.12 billion due to price erosion and a fall in Revlimid sales for the June quarter.
Dr. Reddy's management said sales of the drug in Jul-Sep will be similar to the June quarter, while these would be much less in Oct-Dec. For Jan-Mar, there will be some leftover quota of the product, the company said.
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.
FOCUSED R&D
Dr. Reddy's management said the company is focused on continued investment in complex generics, biosimilars and active pharmaceutical ingredients going forward. The company is expecting its research and development spending to be around 7.0-7.5% for FY26.
Reiterating its margin guidance of above 25% for FY26, the company said the launch of the obesity and diabetic drug Semaglutide would decide the margin trend in FY27. The company is expecting significant gains in terms of sales and profitability through the drug, which is expected to launch in January. The company is also working to launch Liraglutide, another generic in the GLP-1 category, in coming quarters across markets.
Besides product launches in the pipeline, Dr. Reddy's said the company is actively exploring partnerships and acquisitions to drive future growth. As of Jun. 30, the company had a cash surplus of INR 29.22 billion. The management said the company is eligible to get up to INR 10 billion worth of incentives under the government's production-linked incentive scheme over six years. However, the income from this route is expected only in FY27 and FY28, the management 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
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
