Madhav Marda

Madhav Marda inquired about the launch plans for biosimilar Abatacept in European markets, including the target timeline, the addressable market size, and the expected competitive landscape.

Answer

CEO Erez Israeli stated that Abatacept is planned for launch in Europe around July 2027 for both IV and sub-Q presentations, through a combination of direct efforts and partnerships. He estimated the addressable market in Europe to be about $2 billion and expects Dr. Reddy's to be among the first, if not the only, company at launch, similar to the U.S. competitive landscape.

Madhav Marda asked about Dr. Reddy's plans for Abatacept launch in European markets, including the timeline, addressable market size, and expected competitive landscape.

Answer

CEO Erez Israeli and CFO M V Narasimham stated that Abatacept's launch in Europe is expected in July 2027 for both IV and sub-Q formulations, targeting an addressable market of over $2 billion. They anticipate being among the first, if not the only, company to launch at that time, planning to cover all markets either directly or through partners.

Madhav Marda questioned the sustainability of double-digit growth in ex-US markets, seeking key drivers for India, Europe, Emerging Markets, Russia, and API. He also asked for an update on the Abatacept BLA submission timeline, trial completion, and expected approval date.

Answer

CEO Erez Israeli expressed strong confidence in maintaining ex-US growth, detailing drivers like NRT and biosimilars in Europe, innovation and acquisitions in India, generics and biologics in Emerging Markets, and peptides in API. He confirmed the Abatacept Phase 3 trial is nearing completion and the BLA submission is on track for end of calendar 2025, targeting approval in line with early 2027 expiry.

Madhav Marda from Fidelity International asked for an update on the biosimilar abatacept trial, the potential for cost savings, and the company's ability to sell its planned semaglutide capacity.

Answer

CEO Erez Israeli reported that the abatacept trial is progressing well, with a data readout expected in November 2025, targeting a launch in early calendar 2027. He explained that the company has 500-600 basis points of discretionary costs it can adjust post-lenalidomide. He also expressed high confidence in selling the entire 12 million pen capacity for semaglutide in FY27, citing the strategy to be first-to-market in many countries and the immense underlying demand for the product.

Madhav Marda asked for an assessment of the generic semaglutide market opportunity in early-launch countries like Canada and Brazil, specifically focusing on how volumes might expand due to lower prices and increased supply.

Answer

CEO Erez Israeli sized the Canadian market at approximately $1.8 billion with high growth, noting significant room for volume expansion given the prevalence of the disease versus current usage. He confirmed Dr. Reddy's aims to be among the first to launch in Canada, India, and Brazil as IP permits, acknowledging the potential for the market to grow multiple times over.

Madhav Marda asked for management's thoughts on potential long-term risks to the India business from the rise of organized pharmacy retail chains and a potential government push towards generic-generic drugs.

Answer

An unnamed executive and CEO Erez Israeli responded, expressing confidence that the branded generics business will remain dominant for the foreseeable future due to persistent concerns about quality and gaps in regulatory enforcement. They noted that organized retail is still a small part of the market. To counter these long-term trends, Dr. Reddy's strategy is increasingly focused on bringing true, patent-protected innovation to the Indian market.