"The Rs 10,000-crore Alongside the expansion of the national clinical trials network and strengthening of the CDSCO (Central Drugs Standard Control Organisation) with specialised scientific review and globally aligned timelines, these initiatives will enhance India's capacity to develop complex, high-value therapies, he further said.The addition of new NIPERs (National Institute of Pharmaceutical Education & Research) and the upgrading of existing ones will expand opportunities for advanced scientific educa ...

Key Takeaways RDY reported Q3 earnings of $0.16/ADS, matching estimates, while revenues rose 4.4% but missed expectations.RDY's global generics grew 7% YoY, but North America revenues fell 12% on lower lenalidomide sales.RDY's gross margin fell to 53.6% on price erosion, weaker mix and one-time provisions from new Labor Codes.Dr. Reddy's Laboratories Limited (RDY) reported third-quarter fiscal 2026 earnings of 16 cents per American Depositary Share (ADS), which matched the Zacks Consensus Estimate. The comp ...

Core Insights - Dr. Reddy's Laboratories reported a resilient performance in its fiscal third quarter of FY26, with revenue growth and steady profitability despite product-specific headwinds, particularly lower lenalidomide sales and pricing pressure in generics markets [7] Financial Performance - Profit after tax attributable to equity holders was ₹1,210 crore ($135 million), down 14% year over year and 16% sequentially, with diluted EPS of ₹14.52 [1] - Consolidated revenue rose 4.4% year over year to ₹8,727 crore ($971 million), though it declined 0.9% sequentially [6] - The company ended the quarter with a net cash surplus of ₹3,069 crore ($342 million) and reported free cash flow of ₹374 crore ($42 million) [1] Research and Development - R&D spend was ₹615 crore ($68 million), down 8% year over year, attributed to lower biosimilar development spend as significant investment related to Abatacept has been completed [2] Selling, General and Administrative Expenses - SG&A increased 12% year over year to ₹2,692 crore ($300 million), accounting for about 31% of revenue, reflecting targeted investments in branded franchises and foreign exchange effects [3] Margins - Gross margin fell to 53.6%, down 505 basis points year over year and 104 basis points sequentially, due to lower lenalidomide sales and price erosion in unbranded generics [4] - Reported EBITDA margin was 23.5%, including a one-time provision related to changes in employee benefit obligations; excluding that provision, EBITDA margin was 24.8% [5] Strategic Initiatives - The company is focused on base business growth, efficiency, and advancing key pipeline programs, including collaborations and new product launches [8] - A strategic collaboration with Immutep for commercialization of the immunotherapy drug eftilagimod alpha includes a $20 million upfront payment and potential milestones of up to $350 million [9] Product Launches and Approvals - The company launched a novel recombinant vaccine for hepatitis E virus infection in India and plans to launch semaglutide injection in India on March 21 [10][11] - The company received European Commission approval for its ustekinumab biosimilar and launched the product in Germany [15] Regional Performance - North America generics revenue was $338 million, down 16% year over year, attributed to lower lenalidomide sales and price erosion [18] - Emerging markets revenue rose 32% year over year to ₹1,896 crore, driven by new launches and favorable foreign exchange [21] - India revenue increased 19% year over year to ₹1,603 crore, supported by innovation franchise and new brand launches [22] Future Outlook - Management reiterated its focus on execution, including advancing semaglutide and abatacept, improving base business growth, and pursuing value-accretive acquisitions [23]

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended December 31, 2025 Commission File Number 1-15182 DR. REDDY'S LABORATORIES LIMITED (Translation of registrant's name into English) 8-2-337, Road No. 3, Banjara Hills Hyderabad, Telangana 500 034, India +91-40-49002900 (Address of principal executive office) Indicate by check mark whether the registrant files or wi ...

Financial Performance - The company reported a consolidated revenue of INR 8,727 crores ($971 million), reflecting a year-over-year growth of 4.4% and a sequential decline of 0.9% [7] - The EBITDA margin was reported at 23.5%, which included a one-time provision related to new labor codes; adjusting for this, the underlying EBITDA margin was 24.8% [10][15] - Profit after tax attributable to equity holders was INR 1,210 crores ($135 million), a decline of 14% year-over-year and 16% sequentially [11] Business Line Performance - The North America generic business generated revenues of $338 million, a decline of 16% year-over-year and 9% sequentially, primarily due to lower lenalidomide sales [21] - The European generic business reported revenue of $140 million, showing a growth of 4% year-over-year and sequentially [21] - The emerging market business delivered revenue of INR 1,896 crores, reflecting robust growth of 32% year-over-year and 15% sequentially [22] - The India business reported revenue of INR 1,603 crores, achieving a healthy double-digit growth of 19% year-over-year and 2% sequentially [23] - The PSA business reported revenue of $92 million, resulting in a decline of 5% year-over-year and 15% sequentially [24] Market Performance - The company’s emerging market growth was driven by new product launches and favorable forex, with Russia showing a growth of 21% year-over-year [22] - In India, the company outperformed the Indian pharmaceutical market with a quarterly growth of 12.3% compared to the market's 11.8% [23] Strategic Direction - The company entered a strategic collaboration with Immutep for the commercialization of a novel immunotherapy oncology drug, Eftilagimod Alpha, with potential milestones of up to $350 million [16] - The integration of the acquired nicotine replacement therapy business is progressing well, with 85% of the business now under operational controls [16] - The company is focused on advancing its key pipeline products, including Semaglutide and Abatacept, and aims to enhance its innovation portfolio through strategic collaborations [24] Management Commentary - Management expressed confidence in the sustainability of the strong growth in the India business, attributing it to the performance of innovative products and effective brand strategies [32][45] - The management acknowledged challenges in the U.S. market due to lenalidomide sales decline but noted that the base business is growing [56] - The company is preparing for potential competition in the Semaglutide market but remains optimistic about maintaining a competitive edge [49][51] Other Important Information - The company announced a science-based net-zero climate target, making it the only Indian pharmaceutical company to commit to such a target by FY24 [20] - The company has a net cash surplus of INR 3,069 crores ($342 million) as of December 31, 2025 [12] Q&A Session Question: What is the organic growth for the India business considering the Stugeron acquisition? - Management indicated that organic growth without acquisitions is more than 17% [29][30] Question: What is driving the strong growth in the India business? - The growth is primarily driven by innovative products that are gaining market recognition [32] Question: What are the expectations for Semaglutide approval in Canada? - Approval is expected between February and May, with preparations for a launch in Q4 or Q1 [40][41] Question: How much has lenalidomide contributed to EBITDA margins this quarter? - Management could not disclose specific figures due to confidentiality but noted that the decline in the U.S. is primarily due to lenalidomide [56] Question: What are the timelines for Denosumab and Rituximab in the U.S.? - Denosumab is expected to face delays of at least six months, while Rituximab's re-inspection is anticipated soon [60][66] Question: What is the addressable market for Abatacept in Europe? - The addressable market is estimated to be around $2 billion, with plans to launch in multiple countries [94]

Financial Performance - The company reported a 4.4% revenue growth year-over-year, with consolidated revenues standing at INR 8,727 crores ($971 million) [7] - EBITDA margin was reported at 23.5%, which included a one-time provision related to new labor codes; adjusting for this, the underlying EBITDA margin was 24.8% [10][15] - Profit after tax attributable to equity holders was INR 1,210 crores ($135 million), reflecting a decline of 14% year-over-year [11] - Free cash flow generated during the quarter was INR 374 crores ($42 million) [12] Business Line Performance - North America generic business revenues declined by 16% year-over-year to $338 million, primarily due to lower lenalidomide sales and pricing pressures [21] - The European generic business reported a revenue of $140 million, growing 4% year-over-year [21] - The emerging market business delivered revenue of INR 1,896 crores, reflecting robust growth of 32% year-over-year [22] - The India business reported revenue of INR 1,603 crores, achieving a healthy growth of 19% year-over-year [23] - PSAI business revenue was $92 million, resulting in a decline of 5% year-over-year [24] Market Performance - The emerging market growth was driven by new product launches and favorable forex, with Russia business growing 21% year-over-year [22] - The India business outperformed the Indian pharmaceutical market, with a moving quarterly total months growth of 12.3% compared to the market growth of 11.8% [23] Company Strategy and Industry Competition - The company entered a strategic collaboration with Immutep for commercialization of a novel immunotherapy oncology drug, Eftilagimod Alpha, with potential milestones of up to $350 million [16] - The integration of the acquired nicotine replacement therapy business is progressing well, with 85% of the business now under operational controls [16] - The company is focused on advancing key pipeline products like Semaglutide and Abatacept, with expectations for launches in various markets [17][18] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in the India business, attributing it to innovative products and effective brand strategies [31][45] - The company anticipates competitive pricing in the markets for Semaglutide, with expectations of maintaining healthy prices initially before facing competition [49][51] - Management highlighted ongoing efforts to resolve regulatory observations and maintain timelines for product approvals [60][74] Other Important Information - The company announced a science-based net-zero climate target, making it the only Indian pharmaceutical company to commit to such a target by FY24 [20] - The new labor code provision of INR 117 crores includes retrospective costs, but future impacts on employee expenses are expected to be minimal [84][85] Q&A Session Summary Question: What is the organic growth for the India business? - Management indicated that organic growth is more than 17% without acquisitions [29][30] Question: What is driving the strong growth in India? - The growth is primarily driven by innovative products that are gaining market recognition [32][33] Question: What are the expectations for Semaglutide approval in Canada? - Approval is expected between February and May, with preparations for a launch in Q4 [41][70] Question: How has lenalidomide contributed to EBITDA margins? - Management could not disclose specific figures due to confidentiality but noted that the decline in the U.S. is primarily due to lenalidomide [56][57] Question: What are the timelines for Denosumab and Rituximab in the U.S.? - Denosumab is expected to face delays due to a deficiency letter, while Rituximab is anticipated to undergo re-inspection soon [60][66] Question: What is the addressable market for Abatacept in Europe? - The addressable market is estimated to be around $2 billion, with plans to launch in multiple countries [95][96]

Dr. Reddy’s Laboratories (NYSE:RDY) Q3 2026 Earnings call January 21, 2026 09:00 AM ET Speaker2Good day, everyone, and welcome to the Quarter 3 FY26 earnings call of Dr. Reddy's Laboratories Limited. We appreciate your continued interest in our company. I'm Aishwarya Sitharam, Head of Investor Relations at Dr. Reddy's. Joining us today are members of the leadership team: Mr. Erez Israeli, our Chief Executive Officer, and Mr. M V Narasimham, MVN, our Chief Financial Officer. Our quarterly financial results h ...

Q3FY26 RESULTS UPDATE Dr. Reddy's 1 | September 2025 | Investor Presentation | As per consolidated financial statements under IFRS Safe Harbor Statement Dr. Reddy's •·· ~;• 21 JANUARY 2026 This presentation contains forward-looking statements and information that involve risks, uncertainties and assumptions. Forward-looking statements are all statements that concern plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statemen ...

Industry Overview - The U.S. generic drug market is characterized by persistent price erosion, intense competition, and structurally thin margins, despite steady demand for generics [1] - The industry comprises companies that develop and market chemically or biologically identical versions of brand-name drugs after patent expiration, with competition leading to thin margins [4] Current Trends - Generic manufacturers are focusing on complex generics, injectables, and biosimilars, which offer higher margins and limited competition [2] - The loss of patent exclusivity of branded drugs is a key driver for generic drugmakers, allowing them to file for FDA approval to market generics [5] - Stiff competition arises when branded drugs lose exclusivity, leading to aggressive pricing strategies among generic competitors [7] - Patent settlements are crucial for growth, as they expedite the availability of low-cost generics while also involving costly litigation [8] Market Performance - The Zacks Medical – Generic Drugs industry has outperformed both the broader Zacks Medical sector and the S&P 500 Index, growing over 28% year-to-date compared to 6% and 19% respectively [12] - The industry is currently trading at a forward P/E ratio of 14.37X, significantly lower than the S&P 500's 23.61X and the Zacks Medical sector's 21.09X [16] Company Highlights - **Sandoz**: Achieved net sales of $8.06 billion in the first nine months of 2025, up 5%, driven by strong demand for biosimilars [19] [20] - **Teva Pharmaceuticals**: The world's largest generic drug company, focusing on first-to-file opportunities and complex generics, with a stable U.S. generics business [22] [24] - **Dr. Reddy's Laboratories**: Strong position in the U.S. generics market with 75 generic filings pending FDA approval, focusing on complex generics for growth [28] [29]

Core Insights - Indian drugmaker Dr Reddy's has entered into an exclusive licensing agreement with Australia's Immutep for the manufacturing, development, and distribution of Immutep's cancer therapy [1] Company Summary - Dr Reddy's will be responsible for the manufacturing and distribution of the cancer therapy developed by Immutep, indicating a strategic move to expand its oncology portfolio [1] - The partnership highlights Dr Reddy's commitment to enhancing its capabilities in the oncology sector, which is a growing area in the pharmaceutical industry [1] Industry Summary - The collaboration between Dr Reddy's and Immutep reflects the increasing trend of partnerships in the pharmaceutical industry aimed at accelerating the development of innovative cancer therapies [1] - This licensing agreement may position Dr Reddy's favorably in the competitive oncology market, which is characterized by high demand for effective cancer treatments [1]