Core Insights - Dr. Reddy's Laboratories Limited (RDY) reported Q2 fiscal 2026 earnings of 19 cents per American Depositary Share (ADS), exceeding the Zacks Consensus Estimate of 18 cents, and up from 17 cents per ADS in the same quarter last year [1][5] - Revenues increased by 9.8% year over year to $992 million, surpassing the Zacks Consensus Estimate of $983 million, primarily driven by growth in global generics revenues [1][5] Revenue Breakdown - Global Generics revenues reached INR 78.5 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 9.5 billion, up 12% year over year, driven by new active pharmaceutical ingredients (APIs) and favorable foreign exchange [7] - Revenues in the Others segment totaled INR 0.1 billion, down 42% year over year [7] Regional Performance - North America segment revenues declined by 13%, attributed to increased price erosion in key products like Lenalidomide, although this was partially offset by favorable foreign exchange and contributions from new product launches [3] Product Development and Approvals - As of September 30, 2025, Dr. Reddy's had 75 generic filings pending FDA approval, including 73 abbreviated new drug applications (ANDAs) and two new drug applications, with 45 of the ANDAs being Para IVs [4] - The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion for AVT03, a proposed biosimilar to Amgen's Prolia and Xgeva, which is now under review by the European Commission [10][12] Financial Metrics - Gross margin decreased by 492 basis points to 54.7% due to higher price erosion in generics and reduced operating leverage [8] - Research and development (R&D) expenses were $70 million, down 15% year over year, as investments in biosimilars decreased following major funding completion for the Abatacept biosimilar candidate [8] - Selling, general and administrative expenses rose to $298 million, up 15% year over year, driven by increased sales and marketing investments [9] Strategic Moves - Dr. Reddy's announced an agreement to acquire the Stugeron portfolio from Johnson & Johnson, marking its entry into the anti-vertigo market, enhancing its central nervous system portfolio [16]

Dr. Reddy’s Laboratories (NYSE:RDY) Q2 2026 Earnings Call October 24, 2025 10:00 AM ET Speaker2Good day and welcome to Quarter Two, Fiscal Year 2023. I'm Aishwara Sitharam and I'm part of the Dr. Reddy's Investor Relations team. I'd like to indicate that all participants will be in the listen-only mode during the opening remarks, and there will be an opportunity for you to ask questions thereafter. Should you need any technical assistance during the call, please use the chat function in your Zoom applicatio ...

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. ...

Core Insights - Dr. Reddy's Laboratories has signed a definitive agreement to acquire the Stugeron brand and its related portfolio from Janssen Pharmaceutica NV for $50.5 million, covering 18 markets across APAC and EMEA, with a focus on India and Vietnam [1][6]. Company Strategy - The acquisition of Stugeron, which contains the antihistamine Cinnarizine used for vestibular disorders and vertigo, will enhance Dr. Reddy's Central Nervous System (CNS) portfolio and expand its presence in the anti-vertigo therapeutic area [1][3]. - The company aims to improve patient access and reach over 1.5 billion patients by 2030, leveraging strong market access to expand Stugeron's reach across the targeted markets [3]. Financial Performance - Dr. Reddy's reported a 2% year-on-year growth in consolidated net profit at Rs 1,418 crore for the first quarter ended June, with revenue from operations increasing by 11% year-on-year to Rs 8,545 crore [5]. - The revenue growth was broad-based, supported by contributions from the acquired consumer healthcare portfolio in Nicotine Replacement Therapy (NRT) and sustained performance in branded markets [5]. Market Reaction - Following the announcement of the acquisition, Dr. Reddy's shares experienced a slight decline of 1.6% to Rs 1,283.20 on the BSE, although the shares have risen over 16% in the last six months [6].

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]