Dr Reddy's Laboratories Navigates Revenue Challenges with Strategic Focus
Dr Reddy's Laboratories reported a 14% decline in profit after tax due to reduced sales in the US, despite an increase in overall revenue. The company plans strategic initiatives including a generic semaglutide release to boost profitability and long-term stakeholder value.
- Country:
- India
Dr Reddy's Laboratories announced a 14% drop in its consolidated profit after tax, reaching Rs 1,210 crore for the third quarter ending December 2025. This decrease is largely attributed to declining sales in the US market, a key revenue stream.
Despite this, the Hyderabad-based pharmaceutical giant saw its total revenue rise to Rs 8,727 crore during the same period, supported by favourable exchange rates and growth in its branded businesses, according to Co-Chairman & MD G V Prasad.
The company aims to mitigate these challenges by launching a generic version of semaglutide for diabetes management in India. Additionally, measures such as competitive pricing and increasing manufacturing capacity to produce up to 12 million injectable pens annually are in place to bolster market position and affordability.
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