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Dr Reddy's expects US sales dip in FY26, aims for resilience via scale-up
In a joint message to stakeholders, DRL's chairman K Satish Reddy and co-chairman and managing director G V Prasad said one of the company's key products in the US will face increased competition starting February 2026, likely leading to a fall in sales and profits. 'We have been preparing for this through FY25, through a combination of organic and inorganic strategies,' the message added.
DRL stated that in FY26, it aims to grow and strengthen its core businesses and enhance value through portfolio management and strategic differentiation. The company also plans to scale its presence in consumer healthcare, innovative therapies and biosimilars, introduce new revenue streams through acquisitions and partnerships, and streamline structural costs to cushion the impact.
For FY25, DRL recorded a 17 per cent rise in total revenue from operations—from ₹27,916 crore in FY24 to ₹32,554 crore. According to the company's investor presentation, North America contributed 45 per cent of DRL's full-year revenue.
'In the US, growth was steady and matched market pace, supported by new launches, Lenalidomide sales, and a stable base business,' the company noted in its annual report filed with the exchanges. The drugmaker has been targeting a larger share of the US market through a dual-track strategy: reinforcing its core business of branded generics, biosimilars and over-the-counter (OTC) drugs, while also investing in growth areas such as consumer healthcare, biosimilars and novel molecules including new chemical entities (NCEs) and CAR-T therapies.
'Leveraging our distribution capabilities, we entered into a nutrition venture with Nestlé in India, received US rights for Cyclophosphamide from Ingenus, and launched Galvus (anti-diabetes) in Russia,' DRL said.
The company also highlighted that its subsidiary, Aurigene, received US FDA approval for two oncology assets—AUR110 for solid tumours and AUR112 for lymphoid malignancies—and has filed for approval of the osteoporosis drug Denosumab in the US and Europe.
'These initiatives are in line with our strategy to address issues of availability and accessibility of affordable innovation through in-house and collaborative efforts,' the annual report stated.
On Wednesday, DRL's share closed 0.41 per cent lower at ₹1,271.75 apiece on the Bombay Stock Exchange (BSE).
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