DR REDDY’S EYES FRESH GROWTH CYCLE ON SEMAGLUTIDE RELAUNCH

Dr Reddy’s Laboratories is preparing for a new phase of growth, driven by the planned relaunch of semaglutide in Canada, an expanding biosimilars pipeline, steady growth in its domestic business and the rapid expansion of its contract development and manufacturing organisation business, Aurigene Pharmaceutical Services. The company’s renewed growth strategy comes after disruptions in its semaglutide business and a sharp decline in revenue from the cancer drug lenalidomide. The company had regained momentum through new product launches, an improved product mix and tighter cost controls. These measures have helped the company’s EBITDA margin rise above 20 percent. The immediate growth trigger for Dr Reddy’s is the planned relaunch of semaglutide in Canada. Following manufacturing issues that led to a temporary withdrawal of the obesity and diabetes drug from the market, the company expects to resume supplies in November. Management has retained its target of supplying 6–7 million pens between November and March across 10 approved markets, with Canada expected to account for the majority of volumes. Dr Reddy’s has already secured approvals in 10 countries, including Canada and India. The company also sees significant long-term potential as registrations expand across Latin America, Africa and other emerging markets. The company has received US approval for rituximab, a cancer treatment that will be commercialised through its partner Fresenius Kabi. Meanwhile, abatacept, a drug used to treat autoimmune diseases, is emerging as a key growth opportunity in its biosimilars portfolio. The expansion of these products is expected to strengthen the company’s presence in specialised therapies and provide additional growth avenues beyond its existing portfolio.