Dr. Reddy’s Laboratories (REDY.BO): 1Q27 below: Headwinds continue, risk-reward unattractive; remain Sell

研报英文原文证据摘录

Dr. Reddy’s Laboratories (REDY.BO): 1Q27 below: Headwinds continue, risk-reward unattractive; remain Sell

Goldman Sachs Dr. Reddy’s Laboratories (REDY.BO)

semaglutide injection for Type 2 Diabetes in Canada, recent issues to scale-up the API

are likely to impact its market share in the initial months (which was supposed to be the

most attractive period for generic pricing) with Novo and Apotex to benefit from the

same. Besides this, Aspen also got it’s approval from the Canadian regulator recently,

although it is dependent on Dr. Reddy’s API (just like Sandoz which is also expecting an

approval soon). The company remains confident of supplying ~6mn pens (across

markets) in FY26 once it resumes commercial scale API production from Nov onwards.

On pricing, management indicated the Canadian price erosion is already mimicking

multi-generic market (despite only 1 generic launch) and stands at CAD78 (US$55-60,

pre 38-45% rebate adjustments).

The company remains confident of maintaining double digit growth in the base business

(like in Q1), to be driven by new launches (targeting 27 in FY26), incl. high value products

in Bosutinib (TAM of ~US$300mn, 40-45% market on 400mg for which it has 180-day

exclusivity), etc.

Status on biosimilars foray: While the company’s BLA for its Abatacept biosimilar (IV)

had already been accepted for review by the USFDA (management targeting early CY27

launch, subject to approval and inspection milestones) in Q4, it has also filed Marketing

Authorization Application Abatacept intravenous (IV) presentation with EMA. On

Denosumab, the company indicated the Europe launch progress continues, while US

timelines remain dependent on its partner addressing regulatory observations and filing

the BLA.