Dr. Reddy’s to focus on complex products as growth driver to offset Revlimid revenue loss

Dr. Reddy’s is focused on a range of complex drugs, including GLP-1 (such as semaglutide), as well as biosimilars and consumer care, to offset the release of its blockbuster Revlimid (Revlimid) next year, an executive said. ) loss of exclusivity.

Dr. Reddy CEO Erez Israel said the pharma giant has additional growth momentum to continue this trend as the patent on its drug, gRevlimid, its biggest growth driver in recent years, is set to expire in January 2026. A momentum. explain. Israel spoke at a press conference following the release of the company’s third-quarter fiscal 2025 results.

Record quarterly revenue

The pharma giant reported its highest-ever quarterly results and Ebitda this quarter on the back of its recently acquired nicotine replacement therapy (NRT) portfolio, which it completed from Haleon plc in September.

Its operating income is $8,358.6 crore, a year-on-year increase of 16% $7,214.8 billion in the same period last year. Excluding the NRT portfolio, underlying year-over-year growth was 7.5%. The company announced that consolidated profit after tax (PAT) increased by 2% year-on-year to $1,413.3 Crores Q3 FY25 $1,378.9 Crore in Q3 FY24.

The company’s growth in Q3FY25 was primarily driven by revenue from the NRT product portfolio and revenue from the India business and emerging markets.

Its North American revenue increased by 1% year-on-year and decreased by 9% month-on-month. $3,383 Crores. Volume growth coupled with new product launches and favorable foreign exchange were offset by year-over-year price declines. The company said the sequential decline was primarily due to lower sales of certain products, including lenalidomide.

In addition to growth in generics, the company is focused on three business lines – consumer care, biologics and innovative lead products. “In addition to developing the generics business, we will also focus primarily on products that are difficult to manufacture and require relatively more complex scientific knowledge to be cracked, especially GLP-1 products,” Israel said.

Last quarter, the company also completed registrations for biosimilar Denosumab in the United States and Europe with partner company Alvotech. Dr Reddy’s expects to receive US approval within 12 months and European approval in approximately 14-16 months, Israel said.

India business third quarter revenue increased 14% year-on-year $The company said revenue of Rs 1,346 crore was mainly driven by vaccine portfolio revenue (Sanofi license), new product launches and price increases, but was partially offset by lower sales recovery for certain brands in cardiac and gastrointestinal therapeutics.

Amey Chalke, pharmaceutical research analyst at JM Financial Institutions Securities, said that while the pharmaceutical major’s India business performed broadly in line with expectations, the company’s overall numbers fell short of analysts’ expectations. Mint. “Dr. Reddy’s numbers were slightly lower than we expected as sales of lenalidomide (Revlimid) were booked [this] Second quarter results were lower than expected – U.S. sales were down $50 million sequentially, which was the main reason for the miss, while we expected a $30 million decline. ”

Chalke added: “We expect the company to provide clearer U.S. sales performance in the coming quarters, as well as launch information for key products such as semaglutide, abatacept, denosumab and iron sucrose.”

company defeated Bloomberg It is estimated that the comprehensive income is $8,186 crore, although profit after tax was lower than expected.

On Thursday, shares of Dr. Reddy’s Laboratories closed at $1,289.35, down 0.5% on BSE.