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India Gazette
12-06-2025
- Business
- India Gazette
Indian Pharma Industry is likely to grow at a steady pace of 10% in FY26: Report
New Delhi [India], June 12 (ANI): Pharmaceutical companies in India are expected to grow steadily at a rate of approximately 10 per cent in FY26, driven by price increases and the launch of new products, according to a report by ICICI Securities. The report noted that the revenue growth for the industry was mainly supported by the Rest of the World (RoW) markets. It said 'India biz is likely to grow at a steady pace of approx. 10 per cent in FY26, driven by price increases and new launches'. In contrast, the report stated that the core markets of the United States and India saw a slower pace of growth, recording 6.5 per cent and 10.2 per cent respectively. The performance in the U.S. market remains uncertain, especially due to the looming price competition around generic Revlimid (gRevlimid), which could become a major drag on earnings in the coming year. The report added that export-oriented CDMO (Contract Development and Manufacturing Organisation) companies also showed healthy traction. The report mentioned that companies under coverage delivered a robust performance, reporting 11.2 per cent growth in revenue, 12.6 per cent growth in EBITDA, and 15.2 per cent growth in PAT (Profit After Tax). In Q4FY25, the pharma companies covered in the report posted strong results, with revenue, EBITDA, and PAT growing by 11.7 per cent, 15.6 per cent, and 19.0 per cent respectively. Gross margin saw a slight dip of 10 basis points both year-on-year and quarter-on-quarter, settling at around 67 per cent. However, the EBITDA margin improved by 82 basis points year-on-year to reach 24.9 per cent, although it declined slightly by 12 basis points on a quarterly basis. This margin expansion was supported by operating leverage and cost control measures. The report also highlighted that the aggregate R&D spending of these companies stood at 6.7 per cent of sales in Q4FY25. This was lower compared to 7.2 per cent in Q4FY24, but slightly higher than 6.5 per cent reported in Q3FY25. Overall, ICICI Securities remains optimistic about the Indian pharma sector's performance in FY26, especially supported by domestic market resilience and a strong pipeline of new launches. (ANI)
Yahoo
05-06-2025
- Business
- Yahoo
HSBC upgrades Dr Reddy's on weight loss drug semaglutide-driven earnings rebound
-- HSBC upgraded Dr Reddy's Laboratories to Buy from Hold and raised its target price to INR 1445, citing expectations that sales of semaglutide, a generic version of Novo Nordisk's blockbuster weight-loss and diabetes drug, will help drive a recovery in earnings growth from fiscal new target for the U.S.-listed ADR is $16.90, up from $14.44. The brokerage forecasts Dr Reddy's semaglutide revenues at $280 million in 2027, contributing about 18% of the company's earnings per share, with the bulk of those sales expected to come from the Canadian market. In a bullish case, HSBC sees potential sales reaching $500 million. Dr Reddy is preparing for a post-gRevlimid era. The company is expected to lose a major chunk of its earnings from generic Revlimid after January 2026, with investors concerns about what will fuel growth after that. HSBC said semaglutide, along with other efforts in consumer health and biologics, offers a promising path forward. While a court order in India has restricted semaglutide exports until the original brand's local patent expires in March 2026, HSBC believes Dr Reddy's will be among the first to launch in markets such as Canada, Brazil, and India shortly thereafter. The note highlighted tight supply and strong demand for semaglutide in these markets, which could limit price erosion, a typical challenge for generic drugs. HSBC now assumes an early FY27 launch across key geographies instead of only Canada in late FY26. The firm cut FY26 EPS estimates by 5.1% due to declining Revlimid sales but raised FY27 and FY28 forecasts by 12–13% on semaglutide-led growth. Related articles HSBC upgrades Dr Reddy's on weight loss drug semaglutide-driven earnings rebound Morgan Stanley starts Parker-Hannifin at Equal-weight rating Huawei struggles to break Nvidia's AI chip grip in China, says The Information Sign in to access your portfolio
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Business Standard
05-06-2025
- Business
- Business Standard
Dr Reddy's Labs rallies 4%, hits over four-month high; here's why
Share price of Dr. Reddy's Laboratories today Shares of Dr. Reddy's Laboratories hit an over four-month high at ₹1,301.70, as they rallied 4 per cent on the BSE in Thursday's intra-day trade after the pharma company and Alvotech entered into a collaboration and license agreement to co-develop, manufacture and commercialize a biosimilar candidate to Keytruda (pembrolizumab) for global markets. At 09:24 AM; the stock was trading 3.8 per cent higher at ₹1,300.10, as compared to 0.17 per cent rise in the BSE Sensex. The counter saw huge trading volume, with a combined 700,000 shares changing hands on the NSE and BSE. Currently, the stock trades at its highest level since January 2025. It had hit a 52-week high of ₹1,420.20 on August 21, 2024. Meanwhile, in the past one month, Dr. Reddy's has outperformed the market by surging 11 per cent. In comparison, the BSE Sensex was up 0.6 per cent and BSE Healthcare index gained 1.6 per cent during the same period. What's fuelling the 4% rally in Dr. Reddy's stock price? Alvotech, a global biotech company specializing in the development and manufacture of biosimilar medicines for patients worldwide, and Dr. Reddy's Laboratories, along with its subsidiaries, today announced that the companies have entered into a collaboration and license agreement to co-develop, manufacture and commercialize a biosimilar candidate to Keytruda (pembrolizumab) for global markets. Keytruda (pembrolizumab) is indicated for the treatment of numerous cancer types. In 2024, worldwide sales of Keytruda were $29.5 billion. The collaboration combines Dr. Reddy's and Alvotech's proven capabilities in biosimilars, thereby speeding up the development process and extending the global reach for this biosimilar candidate. Under the terms of the agreement, the parties will be jointly responsible for developing and manufacturing the biosimilar candidate and sharing costs and responsibilities. Subject to certain exceptions, each party will have the right to commercialize the product globally. Catch Stock Market Updates Today LIVE JM Financial Institutional Securities views on Dr Reddy's post Q4 results Analysts at JM Financial Institutional Securities maintain a 'BUY' rating on Dr. Reddy's Labs with a target price of ₹1,418. The brokerage firm expects the FY26 topline to grow at 23 per cent with Earnings before interest, taxes, depreciation and amortisation (EBITDA) margins to remain at similar levels as FY25. Analysts said they revised FY26E topline upwards by 8 per cent on account of expected Revlimid sales being greater than those earlier anticipated. Beyond FY26, Semaglutide and Biosimilars (including Abatacept) are expected to drive business performance. Dr. Reddy's plans to be present in all Semaglutide markets losing exclusivity in CY26, while Abatacept is scheduled for launch in CY27. 'We believe the street is underestimating the Semaglutide opportunity for Dr. Reddy's. While it may not fully replace Revlimid sales, it could substantially mitigate the earnings decline in FY27. Though Canada, Brazil, India and China are the key Sema markets losing protection in CY26, a number of Emerging Market countries too are going off patent and thus we have increased our FY27E sales by 5 per cent leading to a 6 per cent increase in FY27E EBITDA,' JM Financial Institutional Securities said in the Q4 result note. Further, Indian Pharma companies are entering lower earnings growth phase post FY26, thus the brokerage firm said they have reduced the 1 year forward P/E multiple by 19 per cent to 21x. At a 21x PE on FY27 EPS, the stock remains attractive compared to peers. About Dr. Reddy's Laboratories Dr. Reddy's Laboratories is a global pharmaceutical company headquartered in Hyderabad, India. Driven by the company's purpose of 'Good Health Can't Wait', the company offers a portfolio of products and services including active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars and OTC. Dr Reddy's major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. The company's major markets include - the US, India, Russia & CIS countries, China, Brazil, and Europe.
Economic Times
30-05-2025
- Business
- Economic Times
Limited upside ahead as Nifty poised to trade in 24,200-25,500 range for next 2-3 Months: Nikhil Ranka
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "So, this is what I would say on the hits on misses. In terms of the consensus earnings for FY27, six-eight months back we were at close to 1,380 rupees if you look at the EPS estimates for FY27, that number is now down to almost 1,300, 1,310 rupees. So, close to 5% to 6% earnings downgrade is what we have seen in the last two quarters," says Nikhil Ranka So, broadly, if you look at it, the earning season has not panned out that great. On the IT side, we have seen quite a bit of negative surprises because there was uncertainty because of this tariffs and because of that as we head into Q1 a lot of decision making has got deferred and therefore, my sense is it has seen some downgrades and over the course of the year we will continue to see some downgrades in it on the back of the pharma side also this result season has been pretty subdued and the problem there is that Revlimid was a big contributor to earnings for most of the pharma companies and it goes off patent in Jan now, we do not have the visibility as to what new drugs will be able to fill that big void that will be created by Revlimid going off patent. And therefore, pharma also should have a very challenging FY26 in that sense. On the positive side, telecom could prove to be a pretty defensive sector as we head into we are seeing problems with Vodafone not going away and therefore, the top two guys should continue to see subscriber addition and three-four months down the line we should again have some sort of tariff hike coming through. So, this is what I would say on the hits on misses. In terms of the consensus earnings for FY27, six-eight months back we were at close to 1,380 rupees if you look at the EPS estimates for FY27, that number is now down to almost 1,300, 1,310 rupees. So, close to 5% to 6% earnings downgrade is what we have seen in the last two my sense is the easy money is already off the table in market. So, we have seen markets rallying from almost 21,800, 22,000 levels that we hit in Feb end to now back to close to 24,800 level. So, we have seen a 3,000-points move on Nifty. And if I give the median multiple of 20 times, then probably we are staring at a single digit upside in index over the next nine months so to say. So, my sense is we will consolidate in this broad range of probably closer to 24,200 on the downside and 25,500 on the higher need to consolidate two-three months here. We have to see how earnings pan out for Q1 and Q2 and what commentary we get from management because right now what is happening is we are continuously seeing earnings downgrade quarter after quarter and for markets to gain momentum and re-rate from that 20x levels, we at least need one quarter where we again get to double-digit earnings growth and we start to see some sort of upgrades on the the base case clearly is that we will have a market which will consolidate here for some time, next two-three months could be pretty muted for the markets from here.
Time of India
30-05-2025
- Business
- Time of India
Limited upside ahead as Nifty poised to trade in 24,200-25,500 range for next 2-3 Months: Nikhil Ranka
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "So, this is what I would say on the hits on misses. In terms of the consensus earnings for FY27, six-eight months back we were at close to 1,380 rupees if you look at the EPS estimates for FY27, that number is now down to almost 1,300, 1,310 rupees. So, close to 5% to 6% earnings downgrade is what we have seen in the last two quarters," says Nikhil Ranka So, broadly, if you look at it, the earning season has not panned out that great. On the IT side, we have seen quite a bit of negative surprises because there was uncertainty because of this tariffs and because of that as we head into Q1 a lot of decision making has got deferred and therefore, my sense is it has seen some downgrades and over the course of the year we will continue to see some downgrades in it on the back of the pharma side also this result season has been pretty subdued and the problem there is that Revlimid was a big contributor to earnings for most of the pharma companies and it goes off patent in Jan now, we do not have the visibility as to what new drugs will be able to fill that big void that will be created by Revlimid going off patent. And therefore, pharma also should have a very challenging FY26 in that sense. On the positive side, telecom could prove to be a pretty defensive sector as we head into we are seeing problems with Vodafone not going away and therefore, the top two guys should continue to see subscriber addition and three-four months down the line we should again have some sort of tariff hike coming through. So, this is what I would say on the hits on misses. In terms of the consensus earnings for FY27, six-eight months back we were at close to 1,380 rupees if you look at the EPS estimates for FY27, that number is now down to almost 1,300, 1,310 rupees. So, close to 5% to 6% earnings downgrade is what we have seen in the last two my sense is the easy money is already off the table in market. So, we have seen markets rallying from almost 21,800, 22,000 levels that we hit in Feb end to now back to close to 24,800 level. So, we have seen a 3,000-points move on Nifty. And if I give the median multiple of 20 times, then probably we are staring at a single digit upside in index over the next nine months so to say. So, my sense is we will consolidate in this broad range of probably closer to 24,200 on the downside and 25,500 on the higher need to consolidate two-three months here. We have to see how earnings pan out for Q1 and Q2 and what commentary we get from management because right now what is happening is we are continuously seeing earnings downgrade quarter after quarter and for markets to gain momentum and re-rate from that 20x levels, we at least need one quarter where we again get to double-digit earnings growth and we start to see some sort of upgrades on the the base case clearly is that we will have a market which will consolidate here for some time, next two-three months could be pretty muted for the markets from here.
