SynopsisDr. Reddy's Laboratories has finalized its acquisition of the Stugeron brand from Johnson & Johnson, encompassing EMEA regions, India, and Vietnam. This strategic move allows Dr. Reddy's to broaden its presence in the anti-vertigo market and reinforce its Central Nervous System portfolio. The company aims to extend Stugeron's reach across 18 key markets, aligning with its goal of reaching 1. ...

Dr. Reddy’s Laboratories has completed a definitive transaction with Johnson & Johnson to acquire Stugeron Forte and Stugeron Plus across 18 markets in the APAC and EMEA regions, with India and Vietnam as key markets.Stugeron Cinnarizine, an antihistamine indicated for the treatment of vestibular disturbances and vertigo. With Stugeron already holding first position in the Cinnarizine represented pharmaceutical market (RPM) and ranked second in the anti-vertigo extended represented pharmaceutical market (eR ...

Group 1 - Dr. Reddy's Laboratories Ltd. announced the acquisition of the anti-vertigo drug 'Stugeron' from Johnson & Johnson affiliate Janssen Pharmaceutica NV for $50.5 million (Rs 445 crore) [1] - The acquisition includes the 'Stugeron' brand and its key local brands Stugeron FORTE and Stugeron PLUS, along with related assets across 18 markets in the Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions, with a focus on India and Vietnam [2] - This deal will enhance Dr. Reddy's Central Nervous System (CNS) portfolio in India and emerging markets by entering the anti-vertigo segment [2] Group 2 - Stugeron contains Cinnarizine, an antihistamine used for treating vestibular disturbances and vertigo [3] - The drug is currently the market leader in the Cinnarizine segment and ranks second in the overall anti-vertigo market segment in India [3]

Financial Data and Key Metrics Changes - Total revenue for FY '25 reached $121.8 million, reflecting a 7.1% increase compared to the prior corresponding period [3] - Recurring revenue remained strong at 84%, with net revenue retention at 102% for FY '25 [12] - Underlying EBITDA increased to $39.5 million, with a cash EBITDA margin of 16% [12] Business Line Data and Key Metrics Changes - Workforce Solutions achieved $5.4 million in new business, including the largest single contract win worth over $1 million [5] - Education and Work Pathways secured $6.6 million in confirmed enterprise wins, with significant traction in higher education [6] - Justice revenue grew by 9.5%, driven by new customer wins and upgrades [14] Market Data and Key Metrics Changes - The enterprise momentum is highlighted by a growth pipeline of $33.1 million, up from $31.8 million in FY '24 [4] - Local government revenue showed a rebound with $2 million in contract wins in Q4 FY '25 [7] - The government segment faced product delays earlier in the year but has since recovered, leading to new wins and upgrades [14] Company Strategy and Development Direction - The company is focusing on its four flagship products to drive enterprise growth and capitalize on digital transformation in large markets [16] - There is a strategic emphasis on AI initiatives, with seven new AI projects launched in FY '25 aimed at enhancing product capabilities [8] - Incremental investments of $2.5 million are planned for FY '26 to support enterprise growth and margin expansion [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering FY '26 with strong momentum, projecting revenue between $132 million and $135 million [25] - The company anticipates continued growth driven by a high conviction pipeline and confirmed wins from FY '25 [25] - Management noted that AI products are expected to contribute to revenue growth as they scale through the customer base [10] Other Important Information - The company announced the upcoming departure of its CFO, with a new CFO to be announced shortly [26] - The integration of the Councilwise property and rating engine has been successful, contributing to the recovery in local government revenue [7] Q&A Session Summary Question: Guidance for revenue in FY '26 and pipeline updates - Management indicated that net revenue retention is expected to be around 103%, with a significant portion of new business wins recognized in FY '26 [30] Question: Acceleration in revenue growth for FY '27 - Management highlighted that growth acceleration is supported by AI products and continued focus on customer upgrades [32] Question: Impact of new hires from competitors - Management confirmed that new hires bring valuable sales and marketing capabilities, enhancing the company's expertise in local government [40] Question: Nature of government revenue growth and churn - Management clarified that churn rates are stable and attributed recent growth to the resolution of earlier bottlenecks in product upgrades [44]

Financial Data and Key Metrics Changes - ReadyTech achieved total revenue of $121.8 million, representing a 7.1% increase compared to the prior corresponding period [3] - Underlying EBITDA increased to $39.5 million, with a cash EBITDA margin of 16% [11] - Recurring revenue remained strong at 84%, with net revenue retention at 102% for FY 2025 [11] Business Line Data and Key Metrics Changes - Workforce Solutions delivered a record year with $5.4 million in new business, driven by Ready Workforce [5] - Education and Work Pathways secured $6.6 million in confirmed enterprise wins, including multiple contracts in higher education [6] - Justice revenue grew by 9.5%, driven by new customer wins and upgrades [13] Market Data and Key Metrics Changes - The local government segment saw a rebound with $2 million in contract wins and upgrades in Q4 alone [6][7] - The enterprise momentum is highlighted by a growth pipeline expanding to $33.1 million, up from $31.8 million in FY 2024 [4] Company Strategy and Development Direction - The company is focusing on its four flagship products and AI initiatives to drive enterprise growth and margin expansion [15][16] - ReadyTech aims to optimize its AI capabilities to enhance product offerings and internal productivity [21][22] - The strategic acquisition of the Councilwise property and rating engine has been well integrated, supporting growth in the local government segment [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering FY 2026 with strong momentum, projecting revenue between $132 million and $135 million [23] - The company anticipates continued growth driven by a high conviction pipeline and confirmed wins from FY 2025 [23] - Management noted that the AI products are expected to provide incremental revenue opportunities as they scale through the customer base [10][31] Other Important Information - The company launched seven AI initiatives in FY 2025, including Talent IQ for Workforce and AI Recognition of Prior Learning for education [8][22] - A new CFO will be announced shortly, with no input on the current outlook guidance from the incoming CFO [50] Q&A Session Summary Question: Can you help us with the bridge from results for this year with respect to the pipeline that has been secured recently? - Management noted that they ended Q4 strongly with $10.4 million in new wins and expect net revenue retention to be around 103% for FY 2026 [28] Question: What underpins the further acceleration in FY 2027? - Management indicated that the acceleration is partly due to increased focus on customer success teams and unlocking cloud upgrades in local government [30] Question: Can you talk about the recent hires from TechnologyOne? - Management confirmed that the hires bring sales and marketing capabilities, enhancing local government expertise [39] Question: How have you talked to rebounds in wins in quarter four? - Management clarified that churn is tracking close to historical rates and the growth was driven by the ability to upgrade clients to the wider suite after resolving a bottleneck [41] Question: Can you discuss the new CFO's input into the outlook guidance? - Management stated that the new CFO had no input on the current guidance, but the announcement of the new CFO is imminent [50]

Financial Data and Key Metrics Changes - ReadyTech achieved total revenue of $121.8 million, representing a 7.1% increase compared to the prior corresponding period [3] - Underlying EBITDA increased to $39.5 million, with a cash EBITDA margin of 16% [11] - Recurring revenue remained strong at 84%, with net revenue retention at 102% for FY 2025 [11] Business Line Data and Key Metrics Changes - Workforce Solutions delivered a record year with $5.4 million in new business, driven by Ready Workforce [5] - Education and Work Pathways secured $6.6 million in confirmed enterprise wins, including multiple contracts in higher education [6] - Justice revenue grew by 9.5%, driven by new customer wins and upgrades [13] Market Data and Key Metrics Changes - The local government segment saw a rebound with $2 million in contract wins and upgrades in Q4 alone [6][7] - The enterprise momentum is highlighted by a growth pipeline expanding to $33.1 million, up from $31.8 million in FY 2024 [4] Company Strategy and Development Direction - The company is focusing on its four flagship products and AI initiatives to drive enterprise growth and margin expansion [15] - ReadyTech aims to optimize its AI capabilities to unlock top-line growth and operating leverage in FY 2026 and beyond [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence heading into FY 2026, projecting revenue in the range of $132 million to $135 million [23] - The company anticipates continued growth driven by a high conviction pipeline and confirmed wins from FY 2025 [23] Other Important Information - The company launched seven AI initiatives in FY 2025, including Talent IQ for Workforce and AI Recognition of Prior Learning for education [8] - A new CFO will be announced shortly, with no input on the current outlook guidance from the incoming CFO [50] Q&A Session Summary Question: Can you help us with the bridge from results for this year with respect to the pipeline that has been secured recently? - Management noted a strong Q4 with $10.4 million in wins and expects net revenue retention to be around 103% for FY 2026 [28] Question: What underpins the further acceleration in FY 2027? - Management indicated that increased focus on customer success teams and AI product scaling will contribute to growth in FY 2027 [30] Question: Can you talk about the capabilities brought by recent hires from TechnologyOne? - Management highlighted that these hires bring valuable sales and marketing capabilities, along with deep domain expertise in local government [39] Question: How have you talked to rebounds in wins in quarter four? - Management clarified that churn is tracking close to historical rates and the growth was driven by the ability to upgrade clients after resolving a bottleneck in the local government segment [41] Question: Has the new CFO had any input into the outlook guidance? - Management confirmed that the new CFO had no input on the current guidance, but an announcement regarding the new CFO is imminent [50]

Marc Washbourne – Co-Founder & CEO Nimesh Shah – Chief Financial Officer FY25 Full Year Results Investor Presentation ASX:RDY 27 August 2025 | of a resident | | | | | --- | --- | --- | --- | | 1 | | | 0 | | 1 | 电 | | | | No. of Acres | 小 | 电 | ● | | 1 | ！ | 中 | . | NZ Ministry of Justice // Jan 2025 1 For personal use only Next generation, mission- critical software crafted to closely meet customer needs across human led sectors Customers across Australia, NZ, UK & Europe 5,000+ Global team of 500+ mission- ...

Core Viewpoint - Extrovis AG and Dr. Reddy's Laboratories have launched an authorized generic version of CARAC (fluorouracil cream), 0.5%, in the U.S. market, which is expected to enhance patient access to this treatment [2][4]. Group 1: Product Launch - The authorized generic Fluorouracil Cream, 0.5%, is approved by the U.S. Food and Drug Administration (USFDA) and is manufactured in Texas [2][3]. - This product is indicated for the topical treatment of multiple actinic or solar keratoses of the face and anterior scalp [3][6]. Group 2: Strategic Partnership - The collaboration between Extrovis AG and Dr. Reddy's aims to increase patient access and create long-term value for the U.S. healthcare system [4][5]. - Dr. Reddy's expertise in commercialization and distribution within the U.S. market is highlighted as a key asset in this partnership [5]. Group 3: Company Background - Extrovis AG is a global biopharmaceutical company focused on developing high-quality therapies for unmet medical needs, with R&D and manufacturing operations in multiple countries [9]. - Dr. Reddy's Laboratories, established in 1984, is committed to providing access to affordable and innovative medicines across various therapeutic areas, including oncology and dermatology [8].

Core Insights - Dr. Reddy's Laboratories Limited (RDY) reported first-quarter fiscal 2026 earnings of 20 cents per American Depositary Share (ADS), exceeding the Zacks Consensus Estimate of 18 cents, and up from 19 cents per ADS in the same quarter last year [1][5] - Revenues increased by 11% year over year to $997 million, surpassing the Zacks Consensus Estimate of $951 million, primarily driven by growth in global generics revenues [1][5] Revenue Breakdown - Global Generics revenues reached INR 75.6 billion, reflecting a 10% year-over-year increase, mainly due to the acquired Nicotine Replacement Therapy portfolio in Europe and strong performance in branded markets [2] - Pharmaceutical Services & Active Ingredients (PSAI) revenues amounted to INR 8.2 billion, up 7% year over year, driven by new active pharmaceutical ingredient launches and favorable foreign exchange, despite lower pricing and softer demand [7] - Revenues in the Others segment totaled INR 1.65 billion, showing significant year-over-year growth [7] Product Launches and Approvals - Dr. Reddy's launched five new products in the United States during the reported quarter, although revenues in the North America segment declined by 11% due to increased price erosion in key products like Lenalidomide [3] - As of June 30, 2025, there were 73 generic filings pending approval from the FDA, including 70 abbreviated new drug applications (ANDAs) and three new drug applications, with 43 of the ANDAs being Paragraph IV filings [3] Financial Metrics - Gross margin decreased by 350 basis points to 56.9% in the first quarter of fiscal 2026, attributed to higher price erosion in generics and reduced operating leverage, partially offset by a favorable product mix [8] - Research and development (R&D) expenses were $73 million, remaining relatively flat year over year [8] - Selling, general and administrative expenses totaled $299 million, up 13% year over year, driven by increased sales and marketing investments [9] Strategic Collaborations - Dr. Reddy's signed a collaboration and license agreement with Alvotech (ALVO) to co-develop and commercialize a biosimilar candidate to Merck's Keytruda, a major cancer drug, with both companies sharing development and manufacturing costs [10][11] - Keytruda generated sales of $29.5 billion in 2024, with a 6% year-over-year increase to $7.21 billion in the first quarter of 2025, highlighting its significance in Merck's revenue growth [12] Market Performance - Shares of Dr. Reddy's have declined by 7.5% year to date, compared to an 11.4% decline in the industry [4]

Financial Performance Overview - The company reported consolidated revenues of $997 million for Q1 FY26, reflecting an 11% year-over-year growth and flat sequentially [8] - EBITDA margin stood at 26.7%, slightly above the target of 25% [7] - Gross profit margin decreased by 350 basis points year-over-year to 56.9%, attributed to price erosion in the generic segment [8] - Profit after tax attributable to equity holders was $166 million, a 2% increase year-over-year but an 11% decline sequentially [12] Business Line Performance - North American business generated $400 million, a 17% year-over-year decline due to price erosion and timing of product procurement [21] - European generic business reported $131 million, a 124% year-over-year increase, driven by new product launches [22] - Emerging markets reported revenue growth of 10% year-over-year, supported by higher volumes and new product introductions [22] - The PSAI business reported $95 million, with a year-over-year growth but a 14% sequential decline [24] Market Performance - The company's India business achieved a revenue of INR 14.71 billion, with a year-over-year growth of 11% and a sequential increase [23] - The Russia business showed a 17% year-over-year growth, indicating resilience despite macroeconomic challenges [22] - The US generic market experienced softness, primarily due to price erosion in selected products [21] Strategic Direction and Industry Competition - The company is focused on scaling its presence in consumer health, innovative therapies, and biosimilars [16] - Strategic collaborations, such as with Albo Tech for pembrolizumab, are aimed at enhancing the biosimilar pipeline [18] - The company is actively exploring partnerships and acquisitions to diversify its portfolio and strengthen its market position [26] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving flat to single-digit growth in the US base business, contingent on successful product launches [32] - The company anticipates a recovery in the US market with the launch of five new products in the upcoming quarters [21] - Management highlighted a commitment to sustainability, achieving an 'A' rating in the climate category from the Carbon Disclosure Project [20] Other Important Information - The company has a net cash surplus of $341 million as of June 30, 2025 [14] - R&D spending for the quarter was $73 million, remaining flat year-over-year, with a focus on complex generics and biosimilars [10] - The company plans to maintain R&D investments at 7-7.5% of sales for the full fiscal year [10] Q&A Session Summary Question: Performance of the US business quarter-on-quarter - Management indicated that the US base business decreased, primarily due to timing issues, and expects flat to single-digit growth for FY26 [32] Question: Outlook for Revlimid - Management expects similar sales levels for Revlimid in the upcoming quarters, with a decline anticipated in Q3 [34] Question: Timeline for semaglutide launches - Management plans to launch semaglutide in Canada and other markets in calendar 2026, with a focus on capacity for the Canadian launch [35][41] Question: Gross margin trends and SG&A costs - Management expects gross margins to remain stable for the year, with SG&A costs projected to be in the 28-29% range [44][45] Question: Update on biosimilar abatacept trials - The readout for the phase two trials is expected on November 25, with plans to submit the BLA following positive results [58] Question: Cost-saving measures and R&D spending - Management indicated potential discretionary cost savings of 500-600 basis points, with flexibility in R&D spending based on business performance [60][98] Question: Capacity for semaglutide and market share - Management expressed confidence in selling the planned 12 million pens, citing strong demand and a strategy to be first to market [66] Question: Status of generic liraglutide filing - Management confirmed plans to launch generic liraglutide in the coming quarters, with some markets expected to be first to market [71]