Contradictions Unveiled: A Deep Dive into Semaglutide's Launch Delays, Capacity Plans, and Competitive Strategies

Revenue Growth and Market Dynamics:
- Dr. Reddy's delivered an 11% year-on-year growth in consolidated revenues for Q1 FY '26, reaching USD 997 million.
- The growth was driven by performance across most markets, excluding the U.S. generics business, which experienced a 17% year-on-year decline.

U.S. Market Challenges and Strategies:
- The U.S. generics business generated $400 million in revenue for Q1, indicating a 4% sequential decrease.
- The decline was primarily due to price erosion in products like lenalidomide and timing of procurement by customers.
- Strategies include launching new products such as 5 new products in Q1, expected to support recovery and drive growth.

Pipeline and Product Launches:
- Dr. Reddy's has a promising pipeline with new product launches like semaglutide and abatacept, which are crucial for long-term growth.
- Semaglutide is anticipated to launch between October and November 2025, with the potential to launch in the U.S. upon patent expiry in January 2026.

R&D and Cost Optimization:
- The company's R&D expenditure was 7.3% of sales, lower than the previous year by 76 basis points.
- Dr. Reddy's aims to manage discretionary costs, targeting a potential savings of 500 to 600 basis points, reflecting strategic cost management efforts.