Latest news with #gRevlimid
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)
Business Upturn
12-06-2025
- Business
- Business Upturn
Nomura upbeat on Dr. Reddy's long-term prospects; maintains ‘Buy' call with Rs 1,575 target
By Markets Desk Published on June 12, 2025, 07:38 IST Nomura has maintained its Buy rating on Dr. Reddy's Laboratories, setting a target price of ₹1,575, following the company's strategic roadmap shared during a recent management interaction. The company laid out four key levers to sustain growth and profitability beyond the gRevlimid opportunity, including: Sustained growth in the base business, Significant upside potential from semaglutide, the blockbuster diabetes and weight-loss drug, Capacity to undertake selective acquisitions in the $2–2.5 billion range, and A strong focus on cost rationalisation, with plans to reduce operating expenses by 500 basis points — from 37% to 32% of sales — thereby maintaining EBITDA margins around 25%. Dr. Reddy's, a major Indian pharmaceutical company with a strong global presence, has expanded its footprint across generics, biosimilars, and active pharmaceutical ingredients (APIs). It has also been building its presence in high-value markets like the US, Europe, and emerging markets through a mix of organic growth and strategic deals. Nomura believes the combination of margin optimisation, pipeline monetisation (including complex generics like semaglutide), and balance sheet flexibility places the company in a strong position for long-term value creation. Disclaimer: The views and target prices mentioned are as stated by Nomura and do not represent the opinions or recommendations of this publication. Investors are advised to consult their financial advisors before making any investment decisions. Markets Desk at
Yahoo
07-06-2025
- Business
- Yahoo
HSBC Upgrades Dr. Reddy's Laboratories Limited (RDY) to Buy from Hold
On June 5, HSBC upgraded Dr. Reddy's Laboratories Limited (NYSE:RDY) from Buy to Hold, raising the price target to INR1,445 from INR1,235, citing an optimistic outlook for the company in terms of earnings potential and solid market standing. A worker at a biopharmaceutical facility packaging an active pharmaceutical ingredient. HSBC's updated estimates for FY2026 to FY2028 take into account the shifting market tide for semaglutide and gRevlimid. The analysts are waiting for semaglutide to be introduced in Canada, Brazil, and India at the beginning of FY2027, which is a greater leap from their prior hypothesis of a launch only in Canada by Q4 of FY2026. The analysts revised their FY2026 sales figures for Dr. Reddy's Laboratories Limited (NYSE:RDY)'s gRevlimid, noting the growing competition. The adjustment includes a 5.1% decrease in the EPS estimate for FY2026, while the EPS forecast for FY2027 and FY2028 grew by 12% to 13%. According to HSBC analysts, the expected surge in semaglutide sales will strengthen Dr. Reddy's earnings. HSBC assigned a new price target for RDY's American Depositary Receipts (ADR) as well, raising it from $14.44 to $16.90. Dr. Reddy's Laboratories Limited (NYSE:RDY) is a global pharma company based in Hyderabad, India, that makes both branded and generic medicines for a wide range of health conditions. The company operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. While we acknowledge the potential of RDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
HSBC Upgrades Dr. Reddy's Laboratories Limited (RDY) to Buy from Hold
On June 5, HSBC upgraded Dr. Reddy's Laboratories Limited (NYSE:RDY) from Buy to Hold, raising the price target to INR1,445 from INR1,235, citing an optimistic outlook for the company in terms of earnings potential and solid market standing. A worker at a biopharmaceutical facility packaging an active pharmaceutical ingredient. HSBC's updated estimates for FY2026 to FY2028 take into account the shifting market tide for semaglutide and gRevlimid. The analysts are waiting for semaglutide to be introduced in Canada, Brazil, and India at the beginning of FY2027, which is a greater leap from their prior hypothesis of a launch only in Canada by Q4 of FY2026. The analysts revised their FY2026 sales figures for Dr. Reddy's Laboratories Limited (NYSE:RDY)'s gRevlimid, noting the growing competition. The adjustment includes a 5.1% decrease in the EPS estimate for FY2026, while the EPS forecast for FY2027 and FY2028 grew by 12% to 13%. According to HSBC analysts, the expected surge in semaglutide sales will strengthen Dr. Reddy's earnings. HSBC assigned a new price target for RDY's American Depositary Receipts (ADR) as well, raising it from $14.44 to $16.90. Dr. Reddy's Laboratories Limited (NYSE:RDY) is a global pharma company based in Hyderabad, India, that makes both branded and generic medicines for a wide range of health conditions. The company operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. While we acknowledge the potential of RDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Economic Times
30-05-2025
- Business
- Economic Times
I-Sec downgrades Aurobindo Pharma to Add, target price Rs 1,330
ICICI Securities has downgraded Aurobindo Pharma to Add (from Buy earlier) with a revised target price of Rs 1,330 (earlier Rs 1,445). The current market price of Aurobindo Pharma Ltd. is Rs 1147.95. Aurobindo Pharma, incorporated in 1986, is a Large Cap company with a market cap of Rs 66664.41 crore, operating in the Pharmaceuticals sector. ADVERTISEMENT Aurobindo Pharma's key products/revenue segments include Pharmaceuticals, Sale of services, Export Incentives and Scrap for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 8516.93 crore, up 4.68 % from last quarter Total Income of Rs 8135.81 crore and up 10.38 % from last year same quarter Total Income of Rs 7715.77 crore. The company has reported net profit after tax of Rs 935.02 crore in the latest quarter. The company's top management includes Mr.M Ramasubramanian Kumar, Mukherjee, Mahajan, P Vanvari, Mr.P Sarath Chandra Reddy, Makkapati, Mr.P V Ramprasad Reddy, Mr.M Madan Mohan Reddy, Mr.K Nithyananda Reddy, Pant Joshi. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 58 Crore shares outstanding. Investment Rationale ADVERTISEMENT Aurobindo Pharma?s US sales growth (up 8.8% YoY to $470 million) in Q4FY25 was driven by gRevlimid; however, sales run-rate is likely to come down in FY26 as pricing competition intensifies, manufacturing at Pen-G plant has been temporarily halted due to fire in the coal yard near conveyor belt. However, production may resume soon post approval from Andhra Pradesh Pollution Control Board which the management expects in next couple of months. Europe business continues to grow at a faster pace and going ahead new launches may boost growth. Management expects traction in Europe to improve ahead led by new product launches and will launch biosimilars in Europe and UK in Q2FY26. Aurobindo has signed a definitive agreement with Merck Sharpe and Dohme (MSD Singapore) for contract manufacturing of innovative biologics, civil work on this plant is on and in FY27 it expects to commission this plant; revenue generation to start in FY28. ICICI Securities lowered its FY26/27E EBITDA by ~12%/8%, respectively, to factor in lower sales from Eugia. The stock currently trades at 17.1x FY26E and 14.3x FY27E earnings, and EV/EBITDA multiples of 9.1x FY26E and 7.6x FY27E. They have lowered rating on the stock to ADD (from Buy) with lower target price of Rs 1,330 (Rs 1,445 earlier), based on 16x FY27E EPS (18x FY26E EPS earlier). Key downside risks include regulatory hurdles, currency volatility and delay in US launches. Promoter/FII Holdings Promoters held 51.82 per cent stake in the company as of 31-Mar-2025, while FIIs owned 15.33 per cent, DIIs 26.23 per cent. (You can now subscribe to our ETMarkets WhatsApp channel) Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.
