Preview: Analysts flag a weak quarter for Dr. Reddy's as generic Revlimid pressure persists

Dr. Reddy's Laboratories

22/07/2026 05:15

** Shares of Dr Reddy's REDY.NS drop 1.1% to 1,192.90 rupees; co to report Q1 results later in the day 
** Analysts expect the pharma firm's profit to nearly halve y/y to 7.64 billion rupees ($79.36 million), per data compiled by LSEG 
** U.S sales, especially that of the generic version of cancer drug Revlimid, to remain under pressure, but strong domestic sales to cushion earnings
** Analysts at PhillipCapital estimate a 45% y/y decline in US sales, with margins to drop 600 basis points on intense competition in Revlimid generics
** India and European markets will see double-digit growth, ICICI Securities said, adding that uptick in semaglutide sales in India and Canada may be gradual
** Analysts say Semaglutide sales outlook will be key monitorable, especially after the company flagged supply disruptions after an impurity issue in the drug's active ingredient halted production of new batches
** YTD, REDY is down 6.2% vs 13% climb in the Nifty Pharma Index .NIPHARM 
     
($1 = 96.2650 Indian rupees)

(Reporting by Nishit Navin and Kashish Tandon in Bengaluru)
((nishit.navin@thomsonreuters.com))