The following is a summary of the Dr. Reddy's Laboratories Limited (RDY) Q2 2025 Earnings Call Transcript:

Financial Performance:

• Dr. Reddy's reported Q2 FY 2025 consolidated revenues of $957 million, a 17% year-over-year increase.

• Gross profit margin stood at 59.6%, a slight increase over the previous year mainly due to improved product mix offset by price erosion.

• EBITDA for the quarter was $272 million, up 5% year-over-year, with a margin of 28.4%, excluding one-time costs related to the NRT acquisition.

• Profit after tax was $150 million, translating to an EPS of INR 15.04.

Business Progress:

• Recently completed the acquisition of the Nicotinell brand, with plans to integrate and scale up the business.

• Entered into a voluntary licensing agreement with Gilead Science for manufacturing and commercialization of Lenacapavir in over 120 countries.

• Received EMA approval for a rituximab biosimilar, planning launches in Europe starting February 2025.

• Investing in expanding facilities for injectables, biosimilars, and APIs, particularly in peptides for the GLP-1 segment.

Opportunities:

• Expansion into nutraceuticals in partnership with Nestle and growth in the nicotine replacement therapy market post-acquisition of Nicotinell.

• Launching new generic and biosimilar products in global markets including the U.S and Europe.

• Leveraging manufacturing capabilities in India to meet global demand, particularly for GLP-1 related products.

Risks:

• Marginal price erosion in the generics market observed, alongside the typical risks involved with integration of new acquisitions such as Nicotinell.

• Regulatory risks as highlighted by the need to address observations from the US FDA for certain manufacturing facilities.

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