Sign in

    Kunal Dhamesha • Macquarie Group

    Kunal Dhamesha's questions to Dr Reddy's Laboratories Ltd (RDY) leadership

    Kunal Dhamesha's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q1 2026

    Question

    Kunal Dhamesha of Macquarie Group asked about the launch strategy for semaglutide in Canada, given the lack of reimbursement for the weight-loss indication (Wegovy), and for a breakdown of the planned capacity by pen type.

    Answer

    CEO Erez Israeli clarified that the initial launch in Canada will be for the generic version of Ozempic (for diabetes), not Wegovy, and he does not anticipate issues with this approach. He also specified that the guided capacity of 10 million pens is expressed in terms of single-use pen equivalents.

    Ask Fintool Equity Research AI

    Kunal Dhamesha's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q4 2025

    Question

    Kunal Dhamesha questioned the significant sequential decline in gross margin, the PBT margin fluctuation in the NRT business, and sought an update on the development and launch timelines for generic semaglutide and the abatacept biosimilar.

    Answer

    An unnamed executive and CFO Mannam Venkatanarasimham attributed the gross margin drop to one-off costs, including severance from the Freeport plant divestiture and lower out-licensing income, stating it was a temporary impact. The CFO advised modeling the NRT business with an EBITDA margin around 25%, attributing fluctuations to integration costs. CEO Erez Israeli confirmed plans to launch generic semaglutide in calendar '26 where IP allows and expects to file for the abatacept biosimilar by the end of calendar '25.

    Ask Fintool Equity Research AI

    Kunal Dhamesha's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q1 2025

    Question

    Kunal Dhamesha of Macquarie Capital inquired about the sequential moderation in cash flow, the step-up in SG&A expenses, and the US product launch momentum. He also asked about the impact of a recent Microsoft outage and sought clarification on the Nestle JV's operational start and the biologics facility expansion.

    Answer

    CFO Parag Agarwal attributed the lower free cash flow to fluctuations in factoring, which he expects to normalize. He explained the SG&A increase was due to investments, higher freight costs, and other one-offs, but reiterated the full-year guidance of 27.5%-28%. CEO Erez Israeli confirmed the US launch plan is on track, stated there was zero impact from the Microsoft outage, and detailed that the Nestle JV would go live on August 1. He also noted the biologics facility in Bachupally is being expanded from 15 kiloliters to a target of 50 kiloliters over the next two years.

    Ask Fintool Equity Research AI

    Kunal Dhamesha's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q4 2024

    Question

    Kunal Dhamesha sought clarification on the U.S. business's quarter-over-quarter decline, asking if the base erosion included generic Revlimid. He also asked about recent trends in U.S. price erosion and the number of planned product launches for the U.S. market in the upcoming year.

    Answer

    CEO Erez Israeli confirmed the quarterly sales figures include Lenalidomide (generic Revlimid). He attributed the sequential decline to a combination of supply sequencing and price erosion on the base business, not market share loss. While the overall pricing sentiment is unchanged, he acknowledged that some large products faced increased competition. For FY'25, the company plans to launch over 20 products in the U.S.

    Ask Fintool Equity Research AI