DRREDDY

Eyes Semaglutide Exports as Revlimid Windfall Fades

’s has secured Delhi High Court approval to export semaglutide, a blockbuster weight-loss drug, to countries where patents expire in January 2026. While domestic sales remain restricted until March, this window positions DRL to capture early international revenues. The opportunity comes at a critical juncture, as the company faces steep earnings pressure from the expiry of its Revlimid exclusivity. On 2 December, the Delhi High Court allowed DRL to export semaglutide to markets like Canada, China, and Brazil, where patents lapse in January 2026. Domestic sales remain barred until March, but the order aligns with earlier interim relief and enables DRL to prepare for a local launch. DRL manufactures semaglutide in injectable form and is developing an oral version. It is collaborating with OneSource Specialty Pharma for contract development and manufacturing, strengthening its position in the fast-growing weight-loss drug market dominated by Novo Nordisk. Canada’s drug regulator issued a notice of non-compliance, delaying DRL’s approval to May–June 2026, six months after patent expiry. Analysts caution that timely approvals and competitive intensity across 87 targeted countries will determine the scale of DRL’s opportunity. DRL’s US generics business, contributing over 40% of segment revenue, declined 15% YoY in H1FY26 due to price erosion and lower Revlimid sales. Consensus estimates project EPS declines of 8% in FY26 and 8.5% in FY27, underscoring the urgency of new growth drivers. Consolidated revenue rose 11% to ₹17,400 crore in H1FY26, aided by the nicotine replacement therapy acquisition. However, EBITDA fell 1.3% to ₹4,200 crore on higher raw material costs. The stock, down 7% YTD, trades at ~21x forward earnings—above its long-term average. A meaningful semaglutide ramp-up or big-ticket approval is essential for re-rating.