Dr. Reddy’s Laboratories has posted robust earnings for the October-December quarter, fueled by higher-than-expected contributions from the blockbuster cancer generic Revlimid, which offset subdued sales in the US and India base business. Despite this success, caution is being exercised by brokerages due to the company’s significant reliance on the cancer drug.
The pharmaceutical giant’s revenue witnessed a substantial increase since Q1, with Revlimid’s contribution persisting in Q2 and Q3. Citi, a brokerage firm, emphasized a on-quarter rise of around $5-15 million in Revlimid contribution in Q4, signaling the drug’s potential to maintain a significant share in the company’s topline throughout FY24-26.
Bolstered by strong Revlimid sales, Dr. Reddy’s Laboratories achieved its highest-ever quarterly revenue, reaching Rs 7,214.8 crore, marking a 6.6 percent increase from the year-ago period and surpassing the Moneycontrol estimate of Rs 7,030.9 crore.
As of 1:20 pm, Dr. Reddy’s Laboratories’ shares demonstrated a notable uptrend, trading 4.60 percent higher at ₹6,109.40.
The net profit for Q3 also exhibited a nearly 11 percent year-on-year growth, reaching Rs 1,378.9 crore, slightly below the estimated Rs 1,383 crore. Investors are closely monitoring the company’s performance and its reliance on Revlimid in the evolving pharmaceutical landscape.