Tarang Agrawal's questions to Dr Reddy's Laboratories Ltd (RDY) leadership • Q4 2024
Question
Tarang Agrawal asked for a breakdown of the significant capital expenditure in FY'24, the cumulative investment made in biosimilars to date, and a general update on the overall biosimilar business.
Answer
CEO Erez Israeli explained that approximately 75% of CapEx is for expansion, primarily in API, injectables, and biologics capacity to support future launches. He stated that the first meaningful biosimilar products are expected in 2027. While not giving a cumulative figure, he noted that biosimilars account for about 20% of R&D spend, suggesting an annual investment in the ballpark of $50-$60 million, which will likely reach breakeven upon the 2027 launches.