Pharmaceutical major Dr Reddy's Laboratories targets double-digit revenue growth from its India business through FY25. This growth will likely be driven by the drugmaker's base business in India, excluding acquisitions.
Building on its base business, the drugmaker also launched 13 new brands in the Indian pharma market (IPM) during the quarter gone by. A further ramp-up of these brands in the upcoming quarters will drive revenue from Dr Reddy's base business in India.
New product launches as well as the in-licensing of Sanofi India's vaccine portfolio helped Dr Reddy's record a 15 percent rise in revenue from the domestic market. With sales of Rs 1,330 as of Q1 of FY25, Dr Reddy's holds the 10th rank in the domestic market, according to data from IQVIA.
The management reaffirmed its commitment to the Indian market and expressed interest in exploring inorganic growth opportunities. "India was, is, and will be our key focus area," they stated in a post-earnings call.
Meanwhile, Dr Reddy's is also concentrating on diversifying its product offerings. The company is making strides in categories such as business-to-business (B2B) generics, consumer health, and biologics segments, identifying these areas as key targets for inorganic growth opportunities. By venturing deeper into these segments, Dr Reddy's aims to strengthen its market presence and drive sustained growth in the Indian pharmaceutical market.
In addition, Dr Reddy's also increased its research and development spend in the quarter gone by, focusing on its biosimilars pipeline, and development efforts across generics as well as novel oncology assets, which will support future growth.
R&D spending made up 8.1 percent of the total revenue in the April-June quarter, up from 7.4 percent in the year-ago period.
Also Read | Dr Reddy's Q1 net profit at Rs 1,392 crore, tops expectations; revenue grows 14%
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