Dr Reddy's Laboratories is expected to face headwinds in the December quarter, with analysts projecting a challenging performance driven primarily by continued pressure from its US operations. The pharmaceutical major's consolidated results are anticipated to reflect the ongoing impact of reduced gRevlimid contribution and intensified pricing pressures in North America.

Financial Performance Outlook

Based on consensus estimates from five brokerages, Dr Reddy's financial performance for Q3 is expected to show significant pressure:

North America: gRevlimid Impact Dominates

The US business remains the primary concern for Dr Reddy's quarterly performance. Multiple brokerages have highlighted the significant challenges facing the North American operations:

YES Securities noted that Revlimid will no longer serve as a meaningful contributor after more than two years of sales, which exposes the underlying growth trajectory of the US base portfolio. The consensus among analysts indicates that pricing pressure and erosion in the base business will continue to weigh on the North American segment's performance.

India Business: Relative Strength

The domestic Indian market is expected to emerge as the strongest growth driver for Dr Reddy's in Q3. Analysts project robust performance across multiple therapeutic segments:

Analysts view the India business as structurally strong for Dr Reddy's, with differentiated product launches and chronic therapy portfolios continuing to gain market traction.

European Operations and Emerging Markets

Europe is anticipated to deliver steady growth momentum during the quarter. Kotak Equities expects particularly strong performance with 13% year-on-year growth, led by the nicotine replacement therapy portfolio. Axis Securities projects more modest but consistent 7% growth supported by steady demand and portfolio expansion.

For other international markets, brokerages forecast approximately 13% year-on-year growth, driven by stable emerging market demand. Kotak Equities specifically highlighted Russia's expected 15% year-on-year growth from volume expansion, though this may be partially offset by marginal rouble depreciation.

Key Development Areas

Beyond the quarterly financial performance, analysts will closely monitor several strategic developments that could influence Dr Reddy's medium-term growth trajectory. Progress on semaglutide approval in the Canadian market has been flagged by both Axis Securities and Motilal Oswal as an important growth visibility driver. Additionally, updates regarding Abatacept filing with the USFDA and potential US contract manufacturing partnerships will be closely watched, particularly in the context of mitigating tariff-related risks and strengthening the company's North American presence.

Dr. Reddy's has announced a significant milestone in the US pharmaceutical market with the first-to-market launch of its generic eye drop solution. The company has introduced Olopatadine Hydrochloride Ophthalmic Solution USP, 0.7% as an over-the-counter product, positioning itself as the pioneer in offering a generic alternative to the branded medication.

Product Launch Details

The newly launched product serves as the generic equivalent of extra-strength Pataday Once Daily Relief, a well-established brand in the US eye care market. This strategic launch allows Dr. Reddy's to capture the first-mover advantage in the generic segment for this particular formulation.

Market Significance

The launch represents a notable achievement for Dr. Reddy's in the competitive US pharmaceutical landscape. By securing the first-to-market position for this generic formulation, the company has positioned itself to potentially capture significant market share in the ophthalmic solutions segment.

The over-the-counter classification of this product makes it accessible to consumers without requiring a prescription, potentially expanding the market reach. This accessibility factor, combined with the cost advantages typically associated with generic medications, could drive adoption among price-conscious consumers seeking effective eye care solutions.

Strategic Impact

This product launch aligns with Dr. Reddy's broader strategy of expanding its presence in the US generic pharmaceutical market. The company's ability to bring the first generic version of this eye care solution to market demonstrates its regulatory expertise and manufacturing capabilities in the ophthalmic segment.

The launch of Olopatadine Hydrochloride Ophthalmic Solution USP, 0.7% marks another addition to Dr. Reddy's growing portfolio of generic medications in the United States, reinforcing the company's commitment to providing affordable healthcare alternatives to American consumers.