Dr. Reddy’s to focus on complex products as growth drivers to offset Revlimid revenue loss | Company Business News

Dr. Reddy’s is focusing on a pipeline of complex drugs, including GLP-1 (such as Semaglutide) as well as biosimilars and consumer care to offset the loss of exclusivity for its blockbuster drug Revlimid next year, a top executive said.
As gRevlimid, the drug that has been the biggest growth driver for the company in recent years, nears its patent expiry in January 2026, the pharma major has additional growth drivers in place to continue the momentum, Erez Israeli, CEO, Dr. Reddy’s, said. Israeli was speaking at a press briefing post the company’s Q3FY25 results.
Record quarterly revenue
The pharma major posted its highest ever quarterly results and Ebitda this quarter on the back of its recently acquired nicotine replacement therapy (NRT) portfolio, whose acquisition from Haleon plc it completed in September.
Its revenue from operations came in at ₹8,358.6 crore, a 16% y-o-y jump from ₹7,214.8 crore posted in the same period in the previous year. Excluding the NRT portfolio, its underlying year-on-year growth was 7.5%. The company announced a 2% year-on-year increase in consolidated profit after tax (PAT) to ₹1,413.3 crore Q3FY25 from ₹1,378.9 crore in Q3FY24.
The company’s Q3FY25 growth was largely driven by revenues from the NRT portfolio, as well as revenues from the India business and emerging markets.
Its North America revenues grew 1% year-on-year and declined 9% quarter-on-quarter to ₹3,383 crore. Volume growth coupled with new product launches and favourable forex was offset by price erosion on a y-o-y basis. The sequential decline was largely on account of lower sales of certain products including Lenalidomide, the firm said.
The company is focusing on three types of businesses in addition to growth in generics—consumer care, biologics, and innovation-led products. “In addition to growing the generics business we are primarily going to focus on tough-to-make kind of products where you need to crack relatively more complex science, and primarily on the GLP-1 products,” Israeli said.
In the last quarter, the company also completed filing for the biosimilar Denosumab in the US and Europe with partner company Alvotech. Dr Reddy’s is expecting approvals from the US in 12 months and from Europe in about 14-16 months, Israeli said.
The India business saw a revenue growth of 14% year-on-year in Q3, at ₹1,346 crore, led by revenues from the vaccine portfolio (in-licensed from Sanofi), new product launches as well as price increases, partially offset by lower volume pick-up in certain brands in cardiac and gastro-intestinal therapy areas, the company said.
While the pharma major’s India business performed largely in line with expectations, the company’s overall numbers missed analyst estimates, Amey Chalke, pharma research analyst at JM Financial Institutional Securities told Mint. “Dr Reddy’s numbers have slightly missed our estimates as Revlimid sales booked [this] quarter were lesser than expectation—there was a $50 million QoQ drop in US sales which is the key reason for the miss versus our expectation of $30 million drop,” he said.
“We expect the company to provide more clarity on US sales run rate in coming quarters as well as key launches like Semaglutide, Abatacept, Denosumab and Iron sucrose,” Chalke added.
The company beat Bloomberg estimates, which pegged consolidated revenue at ₹8,186 crore, although the PAT dipped below estimates.
On Thursday, Dr. Reddy’s Labs share price ended at ₹1,289.35, down 0.5% on the BSE.
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