Additional growth levers in place for Dr Reddy's to mitigate Revlimid revenue loss: CEO Israeli

Dr Reddy's Q3 numbers surpassed the Street's estimates on profit and revenue.

As blockbuster cancer drug Revlimid approaches its patent expiry in January 2026, Erez Israeli, the chief executive officer of Dr Reddy's Laboratories said the drugmaker has additional growth levers in place to offset the anticipated revenue loss from the drug.

Revlimid has arguably been the single biggest growth driver for Dr Reddy's in recent years, fueling record-high US sales last fiscal year due to its robust revenue and margin contribution.

Israeli charted out the company's investments in three key focus areas--consumer health, biologics and innovation--that he expects to drive growth and mitigate revenue loss from Revlimid for Dr Reddy's. Looking ahead, he stated that future growth will not rely on a single product but on all these initiatives.

In an interview with Moneycontrol last quarter, chief financial officer MV, Narasimham had also echoed similar sentiments. To ramp up its consumer health business, Dr Reddy's has announced a joint venture with Nestle, where it plans to target the nutraceuticals segment.

"This collaboration has great potential in India, and we believe it will become a major growth driver. We expect momentum in this portfolio in the near future," Narasimham told Moneycontrol.

Another pillar of Dr Reddy's consumer health business is its NRT therapy portfolio which also turned out to be a major driver of its Q3 earnings. Additionally, the company’s biologics segment is gearing up to capitalise on the biosimilar opportunity, with several major patent expiries in the US anticipated post-FY27.

On the innovation front, Dr Reddy’s is targeting the development of ‘tough-to-make’ products such as semaglutide and GLP-1 drugs. Through its innovation wing, the company also launched Toripalimab in India in November. It is the first and only immuno-oncology drug approved to be used in the treatment of nasopharyngeal carcinoma (a type of head and neck cancer).

The company’s pipeline also includes promising candidates like abatacept, denosumab, and rituximab, which are expected to play a substantial role in driving future growth.

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