Latest news with #DrReddy'sLaboratories
Business Standard
a day ago
- Business
- Business Standard
Dr Reddys Lab gains on global biosimilar deal with Alvotech
Dr. Reddy's Laboratories rose 2.90% to Rs 1,288.40 after the company announced a collaboration with Iceland-based Alvotech to co-develop and commercialize a biosimilar to Keytruda (pembrolizumab) for global markets. Keytruda, a widely used immunotherapy for various cancer types, recorded global sales of $29.5 billion in 2024. The partnership involves joint development and manufacturing of the biosimilar, with both companies sharing costs and responsibilities. Subject to certain conditions, both parties will also have rights to commercialize the product worldwide. Alvotech, a biotech company focused on biosimilars, already has two approved biosimilars, adalimumab and ustekinumab, marketed in several countries. It has a strong pipeline of nine additional biosimilars and a global network of commercial partnerships spanning the US, Europe, Asia, Latin America, and Africa. Dr. Reddy's Laboratories is a global pharmaceutical company. It offers a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC. On a consolidated basis, net profit of Dr Reddy's Laboratories rose 21.64% to Rs 1593.30 crore while net sales rose 20.09% to Rs 8506 crore in Q4 March 2025 over Q4 March 2024.
Time of India
a day ago
- Business
- Time of India
Dr Reddy's shares climb over 4% after Keytruda biosimilar deal with Alvotech
Dr Reddy's Laboratories Q4 earnings Live Events Dr Reddy's Laboratories shares price target (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Dr. Reddy's Laboratories rose over 4% to Rs 1,303.4 in intraday trade on Thursday after the company announced a strategic partnership with Alvotech to co-develop, manufacture, and commercialize a biosimilar of Keytruda (pembrolizumab) for global a blockbuster immunotherapy used to treat various cancers, generated global sales of $29.5 billion in 2024. The collaboration aims to leverage the biosimilar strengths of both companies, accelerating development timelines and expanding the product's international the agreement, Dr. Reddy's and Alvotech will jointly manage development, production, and commercialisation, sharing responsibilities and costs. Except in certain cases, both firms will also have rights to market the biosimilar in global Reddy's reported a 22% year-on-year increase in consolidated net profit to Rs 1,594 crore for the January–March quarter of FY25, compared to Rs 1,307 crore in the same period last from operations rose 20% year-on-year to Rs 8,506 crore, up from Rs 7,083 crore in Q4FY24. On a sequential basis, revenue was up 1.8% from Rs 8,359 crore in the October–December profit after tax grew 13% from Rs 1,413 crore in Q3FY25. All profits were attributable to equity shareholders of the to Trendlyne data, the average target price for Dr. Reddy's shares stands at Rs 1,271, implying a potential downside of around 1% from current levels. Out of 38 analysts tracking the stock, the consensus rating is 'Hold'.So far in 2025, the stock is down 6% year-to-date, though it has gained 14% over the past three months. Dr. Reddy's Laboratories currently has a market capitalisation of Rs 1,07,310 crore.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
4 days ago
- Business
- Time of India
Dr Reddy's Labs shares in focus after I-T dept issues order over Rs 2,396 crore tax demand
Shares of Dr Reddy's Laboratories will be in focus on Monday after the pharmaceutical major received a tax demand of over Rs 2,395 crore from the Income Tax Department for the assessment year 2020–21. The demand is linked to the merger of Dr Reddy's Holdings into Dr Reddy's Laboratories under a scheme of amalgamation. The company disclosed receiving a show cause notice on April 4, 2025, from the I-T Department. This notice required Dr Reddy's to demonstrate why its tax returns for the Assessment Year 2020-21 should not be reassessed. Following the company's response to this initial notice, the Income Tax Authority issued an Order on May 30, 2025, justifying the demand notice. Dr Reddy's has stated that the scheme of amalgamation, which was approved by the National Company Law Tribunal (NCLT) in Hyderabad on April 5, 2022, with an effective date of April 1, 2019, was carried out in adherence to all legal requirements, including tax laws. The company added that it 'strongly believes there has been no escapement of income' due to the amalgamation. It also stated that the development is not expected to have any material impact on its financials, operations, or activities at this stage, and it is currently reviewing the order and taking necessary steps. Live Events 'Based on our assessment, there is no material impact on the financials, operations, or other activities of the company at this stage,' it said in a statement. Also Read: India's top 10 priciest stocks in 2025: MRF to Elcid, see who tops the list Dr Reddy's Labs share price target According to Trendlyne, the average target price for Dr Reddy's Labs is Rs 1,271, indicating a potential upside of nearly 2% from current levels. Among 38 analysts covering the stock, the consensus rating is 'Hold'. Also Read: Ola Electric, Kalyan Jewellers among 10 firms where promoters pledge increased in Q4 Shares of Dr Reddy's are down 9% year-to-date but have risen 12% over the past three months. The company's current market capitalisation stands at Rs 1,04,448 crore. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
19-05-2025
- Business
- Time of India
DRL gears up for biosimilar push, consumer health growth post record FY25
Dr Reddy's Laboratories (DRL) has gained 5.5% on bourses in six trading sessions since declaring the fourth quarter numbers compared with a 3.6% increase in the BSE Healthcare index. The company reported double-digit growth in revenue and net profit for the March 2024 quarter. Revenue growth was driven by the acquisition of Nicotine Replacement Therapy (NRT) portfolio from UK's Haleon in June 2024. The next phase of growth once Revlimid sales taper after the drug goes off patent in January 2026, will be driven by biosimilars and Semaglutide portfolios. The company is likely to post double-digit revenue growth for FY26 but EBITDA margin may shrink to 25% from 28% in FY25 due to tapering sales of gRevlimid. Given this, analysts have reduced the target prices of the stock by 6-14%. Despite cuts, the target prices were 6-18% higher than the stock price on May 09 when the quarterly result was out and continue to remain above Monday's closing price of Rs1,219. Also, biosimilars and semaglutide offer future growth potential thereby supporting the stock price. On a year-on-year basis, DRL's revenue and net profit rose 20% and 21% year-on-year to Rs8,506 crore and Rs1,587 crore in the March 2025 quarter, respectively. Excluding NRT sales, revenue growth slowed to 12%. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased for the fifth consecutive quarter to Rs2,474.9 crore, a year-on-year 32.2% growth. Full-year R&D investment was Rs2,738 crores, up 20% year-on-year. However, its proportion in revenue fell by 118 basis points to 8.5%. The company expects to retain the R&D expenditure in a similar range even after the gRevlimid sales normalise. It will be driven by building a differentiated pipeline spanning small molecules, biosimilars, and complex generics including peptides and cancer therapy. DRL completed 95 global generic filings, bringing the total for FY25 to 249. The company is about to launch GLP-1 (Semaglutide) globally during the current calendar year. Abatacept, a medication used to treat rheumatoid arthritis and other autoimmune diseases, is into Phase III and the company plans to submit it for approval towards the end of 2025. The biosimilar segment remains a key growth driver in the coming quarters. According to Axis Securities, the company's two biosimilar drugs slated for launch in Europe have the potential to contribute $40–50 million in sales in FY26. Additionally, osteoporosis drug Denosumab, scheduled for launch in FY27, is estimated to generate $50 million in annual sales. The brokerage has cut the target price to Rs1,250 from Rs1,450 earlier, valuing the company at 17 times FY27 expected earnings. Elara Capital has lowered its FY26 earnings estimate 10% in anticipation of lower gRevlimid sales while raising FY27 estimate by 4% in anticipation of margin stability. The brokerage has highlighted price erosion in the US market and delay in product approvals as major risks to its forecast.
Economic Times
19-05-2025
- Business
- Economic Times
DRL gears up for biosimilar push, consumer health growth post record FY25
Dr Reddy's Laboratories (DRL) has gained 5.5% on bourses in six trading sessions since declaring the fourth quarter numbers compared with a 3.6% increase in the BSE Healthcare index. The company reported double-digit growth in revenue and net profit for the March 2024 quarter. Revenue growth was driven by the acquisition of Nicotine Replacement Therapy (NRT) portfolio from UK's Haleon in June 2024. The next phase of growth once Revlimid sales taper after the drug goes off patent in January 2026, will be driven by biosimilars and Semaglutide portfolios. ADVERTISEMENT The company is likely to post double-digit revenue growth for FY26 but EBITDA margin may shrink to 25% from 28% in FY25 due to tapering sales of gRevlimid. Given this, analysts have reduced the target prices of the stock by 6-14%. Despite cuts, the target prices were 6-18% higher than the stock price on May 09 when the quarterly result was out and continue to remain above Monday's closing price of Rs1,219. Also, biosimilars and semaglutide offer future growth potential thereby supporting the stock price. On a year-on-year basis, DRL's revenue and net profit rose 20% and 21% year-on-year to Rs8,506 crore and Rs1,587 crore in the March 2025 quarter, respectively. Excluding NRT sales, revenue growth slowed to 12%. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased for the fifth consecutive quarter to Rs2,474.9 crore, a year-on-year 32.2% growth. Full-year R&D investment was Rs2,738 crores, up 20% year-on-year. However, its proportion in revenue fell by 118 basis points to 8.5%. The company expects to retain the R&D expenditure in a similar range even after the gRevlimid sales normalise. It will be driven by building a differentiated pipeline spanning small molecules, biosimilars, and complex generics including peptides and cancer therapy. DRL completed 95 global generic filings, bringing the total for FY25 to company is about to launch GLP-1 (Semaglutide) globally during the current calendar year. Abatacept, a medication used to treat rheumatoid arthritis and other autoimmune diseases, is into Phase III and the company plans to submit it for approval towards the end of biosimilar segment remains a key growth driver in the coming quarters. According to Axis Securities, the company's two biosimilar drugs slated for launch in Europe have the potential to contribute $40–50 million in sales in FY26. Additionally, osteoporosis drug Denosumab, scheduled for launch in FY27, is estimated to generate $50 million in annual sales. The brokerage has cut the target price to Rs1,250 from Rs1,450 earlier, valuing the company at 17 times FY27 expected earnings. ADVERTISEMENT Elara Capital has lowered its FY26 earnings estimate 10% in anticipation of lower gRevlimid sales while raising FY27 estimate by 4% in anticipation of margin stability. The brokerage has highlighted price erosion in the US market and delay in product approvals as major risks to its forecast. (You can now subscribe to our ETMarkets WhatsApp channel)
