Dr. Reddy’s Laboratories is banking on three strategic launches—semaglutide in Canada, denosumab in the U.S. and Europe, and biosimilar abatacept (against rheumatoid arthritis) — to revive growth in its US business and counter the steep price erosion triggered by loss of limited exclusivity of generic anti-cancer drug Revlimid (lenalidomide).
“Semaglutide, denosumab and abatacept are the three molecules that will help us mitigate the impact of declining Revlimid sales and bring back growth momentum,” said M.V. Narasimham, Chief Financial Officer, in a post-earnings interview. He added that while some quarters may see pressure, the company expects single-digit growth in the U.S. over a two-to-three-year horizon.
Semaglutide is awaiting regulatory clearance in Canada, where for which Dr Reddy’s is also fighting a patent litigation in India. Along with Canada, Dr Reddy's gearing up to launch semaglutide in 87 countries including India, Brazil, Turkey, among others.
Denosumab, licensed from Alvotech, has received a positive opinion from European regulators and is expected to be approved in both the US and Europe by December 2025. Denosumab will be the first biosimilar that will be directly distributed by Dr Reddy's in the US. Abatacept, a biosimilar with two variants (IV and SC), is slated for filing in December 2025 and Q1 FY27 respectively, with potential commercial launch expected in early 2027 for IV version.
Dr Reddy’s has built dedicated facilities in Bachupally, Hyderabad, to support biosimilar manufacturing, including for abatacept. “We’ve invested in CCM4, CCM5 and FFM2 blocks to ensure readiness for regulatory inspections and commercial scale-up,” Narasimham said.
The company currently has 75 ANDAs pending approval in the US, including several complex generics. Despite the near-term drag from Revlimid, Narasimham said the broader portfolio and pipeline will support a return to growth.
Outside the US, Dr Reddy’s continues to see double-digit growth across India, Europe and emerging markets. In India, the company broke into the top 10 pharma rankings, driven by innovative launches and structural improvements. “India remains a high-focus market. We’re launching differentiated assets and correcting leadership gaps to sustain outperformance,” Narasimham said.
Dr Reddy's Laboratories on October 24 reported a 7 percent year-on-year rise in net profit to Rs 1,347.1 crore in Q2 FY26. This is lower than the Rs 1,450 crore net profit estimated by brokerages polled by Moneycontrol.
The generic drugmaker's second-quarter profit came below estimates, hurt by stiff competition for the generic version of blockbuster cancer drug Revlimid in its key North America market.
The pharmaceutical major's revenue from operations meanwhile rose nearly 10 percent YoY to Rs 8,828 crore in the July-September quarter of the financial year 2026, surpassing an estimate of around Rs 8,700 crore. It had earlier reported revenue from operations at Rs 8,038 crore for the corresponding quarter of the previous financial year.
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