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    Saion Mukherjee • Nomura

    Saion Mukherjee's questions to Dr Reddy's Laboratories Ltd (RDY) leadership

    Saion Mukherjee's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q1 2026

    Question

    Saion Mukherjee of Nomura inquired about the PLI income for the quarter and the growth trajectory for the CDMO business, Origin Pharma Services.

    Answer

    CFO M V Narasimham stated that PLI income was almost zero for the quarter and would be minimal for the full fiscal year, with more expected in FY27-28. CEO Erez Israeli reported that the Origin CDMO business is growing nicely, targeting about $100 million in sales for the fiscal year, and projected it could reach $250-300 million by 2030 by focusing on small molecule and biologics CDMO, particularly ADCs.

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    Saion Mukherjee's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q4 2024

    Question

    Saion Mukherjee asked for a breakdown of the significant step-up in R&D spending across biosimilars, NCE research, and generics. He also requested an outlook for growth in emerging markets, particularly China and Brazil, for fiscal years '25 and '26.

    Answer

    CEO Erez Israeli detailed the R&D allocation, stating approximately 60% is for small molecules, 20% for biosimilars (driven by clinical trial timing), and 20% for API and other initiatives. For emerging markets, he projected continued double-digit growth in constant currency, noting that China looks promising with a consistent pace of product submissions, though foreign exchange risk remains a factor.

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