Business · Companies · 5 hrs ago
Dr Reddy’s expects earnings recovery to depend on semaglutide and biosimilars
Dr Reddy’s expects another year of falling earnings in FY27, with a possible recovery in FY28.
The Indian drugmaker’s domestic medicines business grew in the September quarter, but lower Revlimid sales in North America and weakness in its active pharmaceutical ingredients business weighed on results.
A generic semaglutide relaunch is planned for November 2026 after supply problems linked to challenges scaling up production.
The company is targeting sales of six to seven million pens this year, with Canada and other international markets expected to contribute first.
A US decision on its abatacept biosimilar is expected in December 2026; if approved, the arthritis drug may take a few quarters to build sales as it is added to insurance formularies.
These products could support a recovery from FY28, alongside Dr Reddy’s domestic business and its pipeline of new medicines.
Dr Reddy’s expects earnings to decline in FY27 before a potential recovery in FY28.
The recovery is expected to depend on relaunching generic semaglutide, ramping up its US abatacept biosimilar and continued strength in its domestic business.
The semaglutide relaunch is scheduled for November 2026 after temporary supply disruptions linked to API scale-up challenges.
A regulatory decision on the US abatacept biosimilar is expected in December 2026.
Domestic formulations grew in the September quarter, but lower Revlimid sales in North America and weakness in the API business offset that growth.
- Who
- Dr Reddy’s Laboratories.
- What
- The company expects an earnings decline in FY27 before a potential recovery in FY28, depending on semaglutide, biosimilars and its domestic business.
- When
- The outlook was reported on October 25, 2026. The semaglutide relaunch is scheduled for November 2026, with an abatacept regulatory decision expected in December 2026.
- Where
- The company’s markets include India, North America, Canada and other international markets.
- Why
- Lower Revlimid sales in North America and weakness in the API business weighed on performance. A recovery is expected to hinge on generic semaglutide, the abatacept biosimilar and domestic business strength.
This story does not have two clearly opposing sides.
Dr Reddy’s launched 12 products and filed 10 ANDAs in North America.
Domestic formulations grew, while lower Revlimid sales in North America and weakness in the API business offset that growth.
The company is scheduled to relaunch generic semaglutide after temporary supply disruptions.
A regulatory decision on the US abatacept biosimilar is expected.
Dr Reddy’s anticipates a potential earnings recovery, with abatacept expected to become an important growth contributor from this year onwards.
- Semaglutide target
- Six-seven million pens this year
- Longer-term semaglutide opportunity
- 12-15 million pens annually
- North America pipeline
- 80 pending filings, including 27 first-to-file opportunities and three NDAs
- First-half FY27 launches
- 12 products in North America
- Abatacept decision
- Expected in December 2026