Dr. Reddy's wants to wait for the the right U.S. manufacturing opportunity:

“As for the production footprint in the U.S., I don't think that at this stage the generic industry is having a short-term issue here. As a company, we would love to have a footprint in the United States. It just has to be the right asset and we are always looking for an asset, but we are not going to do at this stage specific activities to build footprint. It is more, if the right opportunity will come to us, we will be more than happy to engage it.”

— Erez Israeli, CEO

On how pharmaceutical companies might work through potential trade challenges:

“My sense is nobody wants to absorb the tariff. At least, I did not find any player that said yes, I would love to. I think what will happen is there will be a certain adjustment period in which people will have to work together to see what to do with it. So, it is primarily about working together.”

“What I want to emphasize is that under any scenario, we will not create shortage of supply or supply disruption to the U.S. market. This is very, very important to us. We want to stay in the United States for many years. And that's something that was also clarified in all of our discussions with our customers.”

— Erez Israeli, CEO

The company wants to target Europe for growth through country expansion and biosimilar launches:

“Europe is a growing area for us. We are planning to grow by, first of all, we are expanding to more countries. We are launching more products, primarily leveraging the pipeline for the United States. We are going to launch biosimilars in Europe, both rituximab, bevacizumab…and we are obviously planning to grow the NRT [Nicotine Replacement Therapy] business. So indeed, Europe is going to be an important growth area for us.”

— Erez Israeli, CEO

DRL sees strong growth in most brands with specific weaknesses in cardiovascular and GI segments:

“Most of our growth in India will be inorganic. We are licensing products. We are acquiring products. We are introducing innovation to that. So it will not be by stretching necessarily only the big brands…but primarily by introducing products that have better standard-of-care.”

“Having said that, most of our big brands from the past grew actually double digits. There are two areas in which we did not do as well. This is in cardiovascular as well as in GI [Gastrointestinal]. And we have mitigation also, plans for those primarily by adding more marketing resources as well as addressing the product and introduction of life cycle management.”

— Erez Israeli, CEO

Dr. Reddy's confirms its generic semaglutide (GLP) is on track for 2026 launch:

“So we are gearing up to launch it during the calendar 2026 in all the markets that the IP landscape will allow us to launch. So this is still intact, and we are progressing nicely in our preparation for that. As for abatacept, so far, so good. We are close to -- we are deep into Phase 3. And so far, it looks like the timelines did not change.”

“We are planning to submit the product somewhere in the end of this calendar year, end of 2025 to be ready to launch the IP immediately after patent expiration. And the same for the subcu [subcutaneous formulation of abatacept], which will become a year later because of patent related issue. So once the IP landscape will allow us to launch it, we will do it. So far, so good.”

— Erez Israeli, CEO

Yeah. So, the base business in the US decreased. It's primarily timing. So, I will say, I don't see anything relatively special.

“Overall, the base business, the way I see, it's going to be flat to single digit growth, like we normally are discussing. It, of course, depends on the success in some product launches that we are planning.”

— Erez Israeli,CEO

“Management signals near-term binary risk/reward tied to semaglutide—regulatory timing, launch readiness, and market sequencing in key markets are centerpiece drivers for FY26-27. The Canada-first strategy indicates tactical prioritization based on regulatory “white space” before India and other major markets.”

“[Semaglutide]“Assuming that this will happen, the launch in the rest of the countries during calendar 2026 will be in 87 markets overall... The key will be India, Brazil, Turkey, and countries like that will be after March of 2026. And Canada has an opportunity...to be before that.” “...still planning and gearing to get approval of [semaglutide] somewhere between end of October to beginning of November...we can launch...at the time of the loss of exclusivity, in the beginning of January 2026.”

— Erez Israeli,CEO

Management expects strong financial performance from semaglutide. They aim for gross margins above 50% in the base business, and even higher for semaglutide. EBITDA margins are targeted at 25% or more, consistent with historical levels.

“If we successfully launch semaglutide, we should be absolutely good in all the parameters that we are familiar with, meaning the EBITDA as well. So, we are aiming that the base business will always be north of 50%. And in semaglutide, it should be even more than that on the gross margins. And the EBITDA, obviously, like always 25, or north of it.”

— Erez Israeli,CEO

Sales are concentrated this year due to early bookings and larger quotas. Expect similar pricing and volumes now, then a sharp drop next quarter.

“(Lenalidomide) We hope not. I believe not, because most of the booking was done already...when more companies came this year, they had bigger quotas, and they are trying to sell in fewer quarters. So, by design, it has created a certain density, versus the year before. It is all well anticipated...So, I believe, that what you should see from us, it's, give or take, a similar magnitude of pricing as well as quantities and after that, there will be a sharp decline in the other quarter.”

— Erez Israeli,CEO

Semaglutide’s initial supply is externally dependent, with Dr. Reddy’s internal capacity (Vizag) not available until FY28. This introduces operational and supply risk just as market demand surges.

“Yes. So, the launches that will happen in FY26 and FY27 will not be out of Vizag. It will be with our partner. And using our API, but with the partner. Which means that the capacity of FTO-11 will come from FY28 onwards. We are likely to have, in the beginning, with our partner, about 12 million pens in FY27. And if you like to look at calendar 26, because it's very relevant for the potential Canadian launch, it's about 10 million pens.”

Capex will be ₹2,500–2,700 crore, focused on peptides and biosimilars. Growth will come from baseline business, special products, cost cuts, and business development (BD). The company has $2–2.5 billion in financial capacity and is actively pursuing BD opportunities.

“So, capex this year, also, would be, more or less, like last year’s level...₹2,500 to 2,700 crores...a lot of investments is going for peptides and biosimilars.”

“As you know, we are looking for BD (business development)...we have four levers of growth - the baseline growth, special products, cost optimization and BD. We believe, it’s not just this cash, we have also the ability to borrow and that we have $2-2.5 billion of financial capacity. And we are engaging, as we speak, with BD, and hopefully, will come, you know. BD, you can never guide, but, we are definitely working on it and we see growth opportunities.”

— Erez Israeli,CEO

Launch timing in Canada nearly certain (Jan 2026), but Indian launch subject to ongoing IP litigation; risk scenario well-defined.

“(Semaglutide) So, just to correct. There is no patent in Canada. What keeps the product from being launched is data exclusivity that will expire in January ‘26. There is a patent in India, that we are now litigating in Delhi High Court...we are preparing for that. And the second is that we need to get approval. If both happen, we will be good. I don't see an IP situation in Canada that will stop us.”

— Erez Israeli,CEO