23-Oct-2026 22:37:42
DR. REDDY'S LABORATORIES Q2 CONCALL: SEMAGLUTIDE RELAUNCH EXPECTED IN NOVEMBER, 50–55% GROSS MARGIN TARGET & DOUBLE-DIGIT UNDERLYING BUSINESS GROWTH EXPECTED
• SEMAGLUTIDE COMMERCIAL RELAUNCH TARGETED FOR NOVEMBER 2026, SUBJECT TO FINAL VALIDATION • FY27 SEMAGLUTIDE VOLUME TARGET MAINTAINED AT 6–7 MILLION DEVICES • MANAGEMENT PLANNING FOR POTENTIAL ANNUAL SEMAGLUTIDE RUN RATE OF 12–15 MILLION PENS FROM APRIL 2027 • SEMAGLUTIDE APPROVALS RECEIVED IN 10 COUNTRIES, WITH EXPANSION PLANNED ACROSS 89 MARKETS • BRAZIL SEMAGLUTIDE LAUNCH EXPECTED AROUND BEGINNING OF Q4 FY27, SUBJECT TO APPROVALS • GROSS MARGIN TARGET MAINTAINED AT 50–55% OVER NEXT FOUR QUARTERS VS 52.1% IN Q2 • MANAGEMENT EXPECTS DOUBLE-DIGIT UNDERLYING BUSINESS GROWTH EXCLUDING US LENALIDOMIDE • INDIA BUSINESS REVENUE UP 17% YOY TO ₹1,851 CR, SUPPORTED BY NEW LAUNCHES & STRONG DOMESTIC DEMAND • EMERGING MARKETS REVENUE UP 24% YOY TO ₹2,059 CR, SUPPORTED BY PRODUCT LAUNCHES & ACQUISITIONS • NORTH AMERICA REVENUE DOWN 29% YOY DUE TO LOWER LENALIDOMIDE SALES • CDMO BUSINESS TARGETED TO GROW 2–3 TIMES OVER NEXT 3–4 YEARS FROM CURRENT $100 MILLION+ ANNUAL REVENUE BASE • ABATACEPT BIOSIMILAR UNDER REGULATORY REVIEW, WITH COMMERCIAL RAMP-UP EXPECTED APPROXIMATELY SIX MONTHS AFTER APPROVAL • DENGUE VACCINE LAUNCH IN INDIA PLANNED FOR H1 CY2027 THROUGH TAKEDA PARTNERSHIP • PEPTIDES, BIOSIMILARS, CONSUMER HEALTH & INNOVATION IDENTIFIED AS KEY FUTURE GROWTH AREAS • LENALIDOMIDE REVENUE DECLINE, GENERIC PRICING PRESSURE, RAW MATERIAL INFLATION & SEMAGLUTIDE LAUNCH EXECUTION REMAIN KEY RISKS
DR. REDDY S LABORATORIES