Dr Reddy’s: Pharma Growth Beyond Legacy Products

Dr. Reddy’s Laboratories is a diversified global pharma company with strong exposure to generics, APIs, biosimilars and innovative therapies. Q1 FY27 revenue declined 5.6% YoY to ₹8,071 crore, while PAT fell 69% to ₹443.5 crore, mainly due to the absence of lenalidomide revenues and a ₹240 crore semaglutide-related provision. Latest News: The underlying base business continued to show healthy growth across key geographies, while Dr. Reddy’s is building its peptide, biosimilar and innovative-product pipeline. A recent long-term manufacturing agreement through Aurigene provides additional global opportunity. Corporate Action/Catalysts: Recovery after the semaglutide issue, new product launches, biosimilars and CDMO opportunities could support earnings normalisation. However, US pricing pressure, regulatory observations—including a recent Form 483 at Srikakulam—and loss of high-value legacy products remain key risks.