Latest news with #gRevlimid
&w=3840&q=100)
Business Standard
6 days ago
- Business
- Business Standard
Q1 miss for Dr Reddy's, but analysts remain hopeful for future prospects
Despite missing Q1 expectations, Dr Reddy's continues to see growth in key markets like Europe and India, while managing costs to offset challenges in the US Devangshu Datta Mumbai Listen to This Article In the April-June quarter (Q1) of FY26, Dr Reddy's (DRL) US sales fell 4 per cent quarter-on-quarter (QoQ) to $400 million due to erosion in gRevlimid earnings caused by pricing pressure. On a positive note, DRL posted double-digit growth in most ex-US markets, but overall revenue disappointed. The absence of meaningful abbreviated new drug application (ANDA) approvals for DRL, as well as impending tariffs (since it has no US-based formulations facility), remain concerns. DRL's Q1 FY26 revenue grew 11 per cent year-on-year (YoY) to Rs 8,570 crore, and Europe sales jumped 1.4x YoY to Rs 1,270 crore (15 per cent
Business Upturn
6 days ago
- Business
- Business Upturn
Dr. Reddy's shares jump over 3% following Q1 results – Should you buy, hold or sell? Know More
By Aditya Bhagchandani Published on July 24, 2025, 09:37 IST Shares of Dr. Reddy's Laboratories surged 3.06% to Rs 1,285.60 on Wednesday after the company reported its Q1 FY26 financial results. The stock touched an intraday high of Rs 1,287.90 and now commands a market capitalization of Rs 1.07 lakh crore. For the quarter ended June 30, 2025, the pharmaceutical major posted a consolidated net profit of Rs 1,418 crore, up 2% year-on-year. Revenue from operations stood at Rs 8,545 crore, reflecting an 11% YoY increase, primarily driven by contributions from the acquired Nicotine Replacement Therapy (NRT) portfolio and steady performance in branded markets. However, profit declined 11% quarter-on-quarter, while revenue remained flat sequentially. EBITDA for the quarter was Rs 2,280 crore, marking a 5% YoY increase, though EBITDA margin slipped 530 basis points to 56.9%, largely due to pricing pressure in the US generics segment and lower operating leverage. The Global Generics segment recorded Rs 7,560 crore in revenue, up 10% YoY, but remained unchanged QoQ. Revenue from North America declined 11% YoY to Rs 3,410 crore amid price erosion in key generics like Lenalidomide. Meanwhile, India revenue grew 11% YoY to Rs 1,470 crore, aided by new launches and pricing strategies. European business saw a sharp 142% YoY jump to Rs 1,270 crore, driven by the NRT acquisition and product launches. Brokerages offered a cautious outlook on Dr. Reddy's Laboratories following its Q1 FY26 results, primarily due to concerns over the US generics business. CLSA and Jefferies both retained their 'Underperform' ratings, with target prices of Rs 1,120 and Rs 1,100 respectively. CLSA noted that while overall earnings were in line with expectations, the US base business is expected to remain flat or grow in low single digits year-on-year, with Revlimid sales likely tapering off from Q3FY26. Jefferies flagged a miss in Q1 estimates due to a sharper-than-expected decline in US sales, driven by lower revenues from gRevlimid and sustained pressure in the base portfolio. Elevated SG&A and R&D spending also weighed on margins. However, it highlighted upcoming launches such as gOzempic in Canada and the US filing for Abatacept as key triggers to watch. Meanwhile, Morgan Stanley maintained an 'Equal-weight' rating with a target price of Rs 1,298, acknowledging steady growth in most markets but citing generic price erosion and reduced operating leverage as drag factors on margin. Dr. Reddy's Q1 YoY Comparison Table (in Rs crore): Metric Q1 FY26 Q1 FY25 YoY % Change Revenue from Operations 8,545 7,700 11% Net Profit 1,418 1,390 2% EBITDA 2,280 2,170 5% EBITDA Margin (%) 56.9% 62.2% -530 bps Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
&w=3840&q=100)
Business Standard
6 days ago
- Business
- Business Standard
Dr Reddy's Laboratories Q1 print misses target; brokerages split on outlook
Dr Reddy's posted a revenue of ₹8,545.2 crore, up 11 per cent year-on-year (Y-o-Y) but flat sequentially. Tanmay Tiwary New Delhi Listen to This Article Brokerages on Dr Reddy's Q1 results: Pharmaceutical major Dr Reddy's Laboratories' June quarter (Q1FY26) results received a mixed response from brokerages, with some highlighting margin resilience and emerging market strength, while others flagged weak US revenue and concerns around pricing pressure, especially for gRevlimid (Lenalidomide). The company posted revenue of ₹8,545.2 crore, up 11 per cent year-on-year (Y-o-Y) but flat sequentially. However, this came in below street expectations, especially outside the India market. Profit After Tax (PAT) stood at ₹1,417.8 crore, up 2 per cent Y-o-Y but down 11 per cent Q-o-Q, while earnings before interest, tax, depreciation and amortisation (Ebitda)
Business Upturn
6 days ago
- Business
- Business Upturn
Dr Reddy's share: CLSA sees 10% downside, flags tapering US momentum and gRevlimid slowdown
CLSA has maintained its Underperform rating on Dr. Reddy's Laboratories, assigning a target price of ₹1,120 per share, implying a 10% downside from the current market price of ₹1,248.00. The brokerage stated that the company's Q1 earnings were broadly in line with estimates. However, it remains cautious on the outlook for the US business, which is expected to remain flat or see low single-digit growth year-on-year. CLSA also flagged that gRevlimid sales—a key contributor to recent earnings momentum—are likely to start tapering from Q3FY26. While this decline may be partly offset by the launch of Semaglutide (a diabetes and weight-loss drug) in markets like Canada and India, CLSA believes the overall earnings trajectory may moderate in the coming quarters. The brokerage remains concerned about the limited near-term triggers and expects the stock to underperform relative to peers in the sector. Disclaimer: The brokerage views expressed above are those of CLSA. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Ahmedabad Plane Crash News desk at
Mint
7 days ago
- Business
- Mint
Dr. Reddy's US generics business drags Q1 earnings, eyes weight-loss drug launch in 87 countries
Dr Reddy's Laboratories Ltd's US generics business slumped in the June quarter as it faced price erosion in key products like gRevlimid used to treat cancer. US generics revenue declined 11% year-on-year and 4% sequentially to ₹ 3,412 crore in the first quarter of FY26, according to earnings announced on Wednesday. The business accounts for 40%, the highest among all segments, of its top line. The base business remains stable despite the price erosion, the company's management said in a post-earnings press conference. 'This time, as we knew, we are in the last year of lenalidomide or Revlimid [exclusivity], so this actually was very predictable,' said chief executive officer Erez Israeli. He added that the timing of procurement of key products, as well as the lack of new launches during the quarter, added to the drag in US earnings. The company posted an overall revenue from operations of ₹ 8,545 crore in Q1, up 11% over a year earlier. Its profit after tax rose 2% year-on-year to ₹ 1,418 crore. Both the metrics missed estimates. A Bloomberg poll had pegged its revenue to be ₹ 8,690 crore and profit after tax at ₹ 1,513 crore. The company posted an Ebitda of ₹ 2,278 crore, up 5% on-year, with its margins contracting to 26.7% in Q1 from 28.2% a year earlier. Ebitda is earnings before interest, tax, depreciation and amortization, a measure of operational profitability. The company's revenues in other key markets recorded healthy growth. Its Europe business grew 142% on-year to ₹ 1,274 crore, driven by its nicotine replacement therapy (NRT) portfolio acquired from Haleon last year. The India business grew 11% on-year to ₹ 1,471 crore on the back of new product launches and price increases. The company plans to launch weight-loss drug semaglutide in 87 countries next year, including those where patents are expiring and emerging markets where there are no patents, Israeli said. The drug goes off patent in several countries starting 2026. Semaglutide is a GLP-1 (Glucagon-like peptide-1), a class of medications indicated for the treatment of type-2 diabetes and obesity. 'We have some countries where there is no patent. And in others, we need to wait for the patent expiration…We are absolutely planning to launch day one in each one of these markets,' Israeli said. 'The biggest markets that will be ready for a launch will be Canada, India, Brazil, and Turkey.' The drugmaker is currently embroiled in a patent dispute with innovator Novo Nordisk in India. Semaglutide goes off patent in India in March 2026. Dr Reddy's has completed submissions of relevant regulatory filings in each of the countries where it plans to launch and is 'expecting approvals prior to the launch date', said Israeli. The company expects sales of semaglutide and other GLP-1s to be huge growth drivers. 'The sales of the product itself is big and can come to hundreds of millions of dollars…it depends on the price and market share we are getting [but] the beauty of this product is that we believe that once the price will go down, significantly more patients will use this product for both type-2 diabetes as well as weight loss,' he said. 'We believe this is a group (GLP-1s) with a lot of potential, and again, the sizes can be hundreds of millions of dollars; and therefore significant in the growth of the company in the next year,' he added. Through the next decade, the company plans to roll out 26 GLP-1 products including semaglutide, tirzepatide and others as they go off patent. Dr Reddy's shares closed 0.65% higher at ₹ 1,248.00 on Wednesday on NSE, compared with a 0.63% rise in Nifty 50, before the company announced its results.
