Synopsis: The brokerage firm assigns the pharma stock a ‘Buy’ recommendation, which suggests that there is an upside of about 26 percent, driven by solid pipeline performance, clear growth visibility, and a $214 million market potential from its new US product release.
The article outlines the rationale behind Nomura’s bullish stance on this company, which focuses on making high-quality, innovative medicines accessible and affordable across the world
With a market capitalization of Rs 1,07,831 crore, Dr Reddy’s Laboratories Ltd’s shares closed at Rs 1,292 per share, up by 1.60 percent from its previous close. The share of the company gave a return of 22 percent over last five year.
Brokerage’s View
Nomura maintains a ‘Buy’ rating on Dr Reddy’s Laboratories with a target price of Rs 1,600, implying an upside potential of around 26 percent from the previous close, supported by expectations of steady growth visibility, strong pipeline execution, and improving earnings momentum.
180-Day Exclusivity Helps Drive Launch: Dr. Reddy’s has launched generic Bosulif (Bosutinib 400 mg) in the US market, and this product benefits from 180-day exclusivity. This period of limited competition is likely to help improve the pricing power, market share, and near-term visibility of revenues of the product, thereby helping drive margin expansion..
Addressing a Large Market Opportunity: Sales of the reference brand for Bosulif are estimated at USD 214 million annually in the US market, thus representing a significant commercial opportunity. This gives Dr. Reddy’s ample opportunity to scale up its revenues during the exclusivity period.
Strong Demand Trends: As per IQVIA data, the product achieved 6 percent volume growth y-o-y in MAT April 2026. Such stable demand trends indicate that patients continue to use this molecule actively, which underlines its continued relevance within its therapy area.
Strategic Partnership and Revenue Outlook: The launch has been executed in partnership with MSN, the sole first ANDA filer, giving a strong competitive advantage during exclusivity. Nomura estimates FY26F revenue contribution of USD 25-30 million, assuming 30-40 percent price erosion and around 40 percent market share.
Management outlook: Milan Kalawadia, CEO – North America, Dr. Reddy’s Laboratories, Inc. said the launch reflects the company’s focus on timely entry into high-priority therapies while expanding patient access. He added that Dr. Reddy’s remains focused on strengthening its oncology portfolio and ensuring critical treatments are accessible and affordable.
Moreover, he added that this launch will help the company achieve its mission of expanding into complex treatments through collaborations in the healthcare industry and improving the availability of treatments for patients and healthcare professionals.
Company Overview
Dr. Reddy’s Laboratories is one of the leading pharmaceutical companies in the world, which is based in Hyderabad, India. The company was founded in 1984 by Dr. Kallam Anji Reddy and specializes in producing innovative and quality medicines.
Financial Highlights: The revenue from operations decreased by 12 percent to Rs 7,546 crore in Q4 FY26 from Rs 8,528 crore in Q4 FY25, and EBIDT decreased by 81 percent to Rs 382 crore in Q4 FY26 from Rs 1,998 crore in Q4 FY25. This was accompanied by a net profit decrease of 86 percent to Rs 221 crore in Q4 FY26 from Rs 1,587 crore in Q4 FY25, resulting in an EPS decrease of 86 percent to Rs 2.65 per share in Q4 FY26 from Rs 19.09 per share in Q4 FY25.
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