Dr Reddy's Labs optimistic about Trump administration
Indian generic drugmaker Dr Reddys Laboratories expressed optimism about the Donald Trump administration on Thursday, citing the country would have an edge amid U.S-China tensions.
"I believe that the type of products that we bring in and the positioning of India is favorable," CEO Erez Israeli said in a press call, adding that the company's drugs in the U.S. market are cheaper than the current alternatives.
As per Reuters report, he said,"..This is very much what also I believe the U.S. administration wants."
Earlier in the day, the generic drugmaker reported consolidated net profit of 14.14 billion rupees ($163.7 million) for the quarter ended Dec. 31, missing analysts' estimate of 14.89 billion rupees as per data compiled by LSEG.
Indian generic drugmakers have been struggling with sales slowdown in the U.S., delayed approvals for new drug applications, and lower pricing amid stiff competition, according to analysts.
Revenue from North America, Dr Reddy's biggest geography, rose 1% to 33.80 billion rupees, as volume growth on the back of new launches was offset by lower prices.
"The sequential decline was largely on account of lower sales of certain products including Lenalidomide," the company said.
Lenalidomide, a major contributor to Dr Reddy's North America sales since 2022, is a generic version of Bristol-Myers Squibb's popular cancer treatment drug Revlimid.
Still, Reddy's total revenue climbed 16% to 83.81 billion rupees, beating analysts' estimate, boosted by a 14% growth in its India sales.
The growth was also aided by revenue from the company's in-licensed vaccine portfolio. Last year, Reddy's partnered with French drugmaker Sanofi for distribution of its vaccines in India.
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