Dr Reddys Laboratories , a leading Indian pharmaceutical company, has definitively stated that it has no plans to collaborate with Eli Lilly for the launch of Tirzepatide in India. This clarification comes amidst speculation in the pharmaceutical industry about potential partnerships for bringing new diabetes medications to the Indian market. Simultaneously, the company has expressed optimism about its future growth prospects.

Key Points of the Clarification

• A company executive from Dr. Reddy's made the statement, ruling out any collaboration with Eli Lilly for Tirzepatide in India.
• Tirzepatide is a diabetes medication that has been gaining attention in the global pharmaceutical market.
• The clarification aims to dispel any rumors or misconceptions about a potential partnership between the two pharmaceutical companies.

Growth Projections and Financial Performance

Dr. Reddy's expects continued growth driven by several key factors:

• The company's biosimilars portfolio
• Its API (Active Pharmaceutical Ingredients) pipeline
• A global expansion strategy

Financial highlights include:

• A reported 22.00% return on capital employed (ROCE)
• Strong cash flow generation
• Anticipated growth from Europe and emerging markets
• Expectation of high-margin products enhancing long-term profitability

Implications for the Indian Pharmaceutical Market

This announcement has significant implications for the Indian pharmaceutical landscape, particularly in the diabetes care segment. India, with its large diabetic population, represents a crucial market for innovative diabetes treatments. Dr. Reddy's decision not to partner with Eli Lilly for Tirzepatide suggests that the company may have alternative strategies for addressing the diabetes market in India.

Dr. Reddy's Recent Activities

While not directly related to the Tirzepatide announcement, it's worth noting that Dr. Reddy's has been active in other areas of its business. According to recent LODR (Listing Obligations and Disclosure Requirements) data:

• The company has made changes in its senior management, with Mr. Sanjay Sharma, Global Head Operations, taking on additional responsibilities as Chief Human Resources Officer (CHRO).
• Dr. Reddy's continues to focus on its core pharmaceutical business, with recent financial results showing revenue growth and ongoing efforts in research and development.

Conclusion

Dr. Reddy's clear stance on not partnering with Eli Lilly for Tirzepatide in India provides transparency to stakeholders and the market. The company's growth projections, driven by its biosimilars portfolio and global expansion strategy, indicate a positive outlook for its future performance.

As the landscape of diabetes treatment continues to evolve, it will be interesting to see how Dr. Reddy's positions itself in this important therapeutic area in the Indian market, while also pursuing growth opportunities in Europe and emerging markets.

The pharmaceutical industry will likely continue to watch Dr. Reddy's moves closely, particularly in relation to its strategies for bringing new and innovative treatments to the global market and its efforts to enhance long-term profitability through high-margin products.

Dr Reddys Laboratories reported a robust performance in the second quarter of fiscal year 2026, with revenue growth of 9.8% year-on-year (YoY) and a 14% increase in profit attributable to equity holders, despite facing headwinds in its North American market.

Financial Highlights

For Q2FY26, Dr. Reddy's reported:

*Attributable to equity holders of the parent company

Segment Performance

Global Generics

• Revenue: ₹7,850.00 crore, up 10% YoY and 4% QoQ
• North America revenue declined 13% YoY to ₹3,241.00 crore due to price erosion and lower Lenalidomide sales
• Europe revenue surged 138% YoY to ₹1,376.00 crore, primarily driven by the acquired Nicotine Replacement Therapy (NRT) portfolio
• India revenue grew 13% YoY to ₹1,578.00 crore
• Emerging Markets revenue increased 14% YoY to ₹1,655.00 crore

Pharmaceutical Services and Active Ingredients (PSAI)

• Revenue: ₹945.00 crore, up 12% YoY and 16% QoQ
• Growth driven by new API product launches and favorable forex

Key Developments

1. Acquired the STUGERON® portfolio for $50.5 million, expanding presence in 18 markets across APAC and EMEA regions
2. Launched novel gastrointestinal drugs Tegoprazan (PCAB®) and Linaclotide (Colozo®) in India
3. Partnered with Unitaid, Clinton Health Access Initiative, and Wits RHI to make HIV prevention tool Lenacapavir accessible in low- and middle-income countries
4. Received positive opinion from EMA's CHMP for denosumab biosimilar candidate
5. Acceptance of IND application for COYA 302, a novel drug for ALS treatment

Challenges and Outlook

While the company demonstrated growth across most markets, it faced challenges in North America due to price erosion in key products, including Lenalidomide. The gross margin declined by 492 basis points YoY, primarily due to reduced Lenalidomide sales and price erosion in North America.

Dr. Reddy's remains focused on strengthening its core business, advancing key pipeline assets, driving productivity, and pursuing business development initiatives to offset challenges in the US market.

Co-Chairman & MD, G V Prasad, commented: "Growth in Q2 was driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRT) portfolio, which helped offset the decline in U.S. Lenalidomide sales. We remain focused on strengthening our core business, advancing key pipeline assets, driving productivity and pursuing business development initiatives."

The company's diversified geographical presence and focus on innovation appear to be key factors in maintaining growth momentum despite headwinds in certain markets.