Pharma major Dr Reddy’s Laboratories (DRL) on Tuesday reported an 86 per cent year-on-year (Y-o-Y) drop in consolidated net profit to ₹220 crore in the March quarter of FY26 from ₹1,593 crore in the corresponding period last year.
The drop was attributed to weaker sales of DRL’s generic version of cancer drug Revlimid (lenalidomide) in the United States (US) market.
Lenalidomide is an oral immunomodulatory medication used to treat cancers such as multiple myeloma, myelodysplastic syndromes (MDS), and certain lymphomas.
While Revlimid lost its primary patent in 2019, certain drugmakers, including DRL, were allowed to sell generics under volume-restricted agreements with patent holder Bristol Myers Squibb (BMS).
However, DRL’s limited exclusivity for Revlimid ended on January 31, 2026, allowing drugmakers to sell unlimited lenalidomide generics.
Consequently, the firm’s revenue from operations fell to ₹7,516 crore in Q4 FY26, an 11 per cent Y-o-Y decrease from ₹8,506 crore recorded in the same quarter last year.
This comes even as the drugmaker has been witnessing a continuous drop in revenue from its North American market, which contributed 34 per cent to DRL’s overall revenue for FY26.
Revenue from the geography fell 51 per cent Y-o-Y to ₹1,756 crore in the March quarter from ₹3,559 crore due to price erosion in lenalidomide.
DRL also had an adverse impact from a shelf stock adjustment (SSA) related to lenalidomide of ₹453 crore, along with impairment of CAR-T assets and Eftilagimod Alfa totalling ₹27.7 crore.
“Our performance this year reflects the impact of lower lenalidomide sales and several one-offs. The resilience of our branded businesses and currency tailwinds helped partially mitigate this impact,” said DRL Co-Chairman and Managing Director G V Prasad.
In contrast, revenue from India rose 20 per cent Y-o-Y to ₹1,566 crore from ₹1,305 crore, driven by new brand launches. Similarly, DRL’s European and emerging markets revenue rose 14 per cent and 29 per cent Y-o-Y, respectively.
DRL’s pharmaceutical services and active ingredients (PSAI) segment, however, witnessed a 5 per cent Y-o-Y decline in revenue due to lower volume uptake in the active pharmaceutical ingredient (API) business.
The drugmaker released its results after market hours. On Tuesday, DRL’s shares ended the day’s trade at ₹1,270.10 apiece, down 0.75 per cent intraday.
DRL set to launch generic semaglutide variants in India, Canada
Dr Reddy’s Laboratories (DRL) on Tuesday announced that it will be launching its generic versions of diabetes drug semaglutide in Canada in the coming days.
This comes after DRL received approval from Health Canada to sell generic semaglutide in April this year, ending months of regulatory delays.
Speaking to reporters, DRL CEO Erez Israeli said that the firm will also be launching its version of oral semaglutide for Indian markets soon. The drugmaker had received an approval from Drug Controller General of India (DCGI) for the same last month.
While he did not share an exact date, Israeli confirmed that both launches will take place this month. “We are expecting to launch this product in several regions, including emerging markets in the coming 12 months,” Israeli said.
He added that the Canada approval will give DRL a platform to structurally enter the glucagon-like peptide (GLP-1) market.
