“We are still awaiting clarity on tariffs,” said GV Prasad, Co-Chairman and MD at Dr Reddy’s Laboratories. While the specifics are unclear, he noted that shifting large-scale production, especially for the US market, would not be easy due to high volumes.
“If tariffs are imposed, it should be possible to absorb them,” Prasad said, adding that US drug prices are already low, and any additional duties would primarily raise costs for consumers rather than disrupt supply.
He also questioned the feasibility of making low-cost products in the US, stating that it may not be financially viable.
The company is focusing more on branded markets, which are seen as more stable than the generic drug market. It has also expanded into consumer health with the acquisition of nicotine replacement therapies from Haleon and is licensing innovative products from global companies.
While its core business is expected to continue growing, regulated markets may face pricing challenges. However, the company remains committed to allocating more capital to branded markets and seeking sustainable business acquisitions.
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Russia remains a key market for Dr Reddy’s, and the company plans to continue expanding in the region. “We are not getting out of Russia, it is a core market for us,” Prasad added.
Oncology remains a key focus for the company, with ongoing investments in the field. Dr Reddy’s is developing generic oncology drugs and small molecules while also investing in innovation. Additionally, the company is licensing advanced oncology products from global firms to expand its portfolio.
As of 1:36 pm on the NSE, Dr Reddy’s Laboratories shares are trading at ₹1,120.10
Dr Reddy’s Laboratories’ current market capitalisation is ₹93,532 crore. Its shares have declined 12% over the last year.
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