DRREDDY / Q4-FY24 / claim-ledger

Audit the questions that mattered.

Dr. Reddy's Laboratories · Analyst questions, management answers, and the quality of the response where the ledger is available.

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PositiveQ4-FY24 · 2024-05-08Back to quarter ↗

Questions audited

Answered directly

64%

Numeric claims

Consistency

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Question ledger

What was answered, and how?

Neha Manpuria · Bank of America

direct

Timeline and margin impact of Nestlé JV, and whether it is above India growth guidance.

So yes, it's going to be above that, and at the same time, it will take time to bring the brands... Likely that in the first three years it will be some level of investment... It will be post FY 2026, likely, even, post FY 2027.

Neha Manpuria · Bank of America

direct

When complex products and biosimilars will contribute to earnings, and R&D guidance.

In terms of contribution to the growth, the small molecules, we will see that already in FY 2025... In terms of the biosimilars... likely that in FY 2027, we will start to see the products, coming. The level of, R&D for next year will be, around 8.5%-9%.

Kunal Dhamesha · Macquarie Capital

evasive

Whether base business erosion includes generic Revlimid contribution.

The quarter obviously include the sales of linaclotide. The decline is a combination of a sequence of service. So it's not a market share loss, it's more of a sequence of supply, as well as certain price erosion that was on the base business, unrelated to linaclotide.

Kunal Dhamesha · Macquarie Capital

partial

Whether U.S. price erosion trend has accelerated recently.

So the overall sentiment is unchanged. Still, the lion's share of the interest, I think, is sustainability of service and supply... At the same time, we did face competition in some of our big products, and those products we did see price erosion.

Saion Mukherjee · Nomura

direct

Breakdown of R&D spend increase across biosimilars, NCE, and generics.

So the R&D is spent, obviously on the small molecules as well as the big molecules. I think the main contribution to the growth is the timing of the clinical trial of the biosimilar, which is about 20% of the R&D spend. So if you wish, between the small molecules and the big molecules, so you have about 60% that goes to the small molecules, about 20% that is going to the biosimilars, and the 20% that goes to either API or other initiatives.

Saion Mukherjee · Nomura

direct

Growth outlook for emerging markets, especially China and Brazil.

So it will continue to grow. It will continue to grow in double digits. China looks good, we are now consistently submitting 14, 15 products a year. So this likely to continue. And also, we got some interesting approvals. So overall, in constant currency, I believe that we are in a good shape.

Balaji Prasad (Michaela) · Barclays

partial

Details on four new U.S. launches and CRL for biosimilar Rituximab.

On the launches this quarter, as I mentioned, we launched five products during the quarter. We kind of mentioned the names along the way. We will try to provide it to you in a second. As for the CRL, we got certain questions primarily about the CMC of the product, and we are planning to address that around the September timeframe.

Tarang Agrawal · Old Bridge

partial

Breakdown of INR 2,700 crore CapEx, cumulative biosimilar investment, and biosimilar business update.

About CapEx, first of all, and most of our CapEx is going toward expansion. Let's say give or take, around 75% of it is going to expansions. And normally, the other is going what we call maintenance... Also, for next year, we are investing primarily the CapEx in products that we want to launch and with that capacity, both in the API as well as in our injectable facilities.

Tarang Agrawal · Old Bridge

partial

Cumulative spend on biosimilars and whether $50-60 million per annum is reasonable.

What you can assume, and I mentioned it before, that if 20% is going to the R&D, this is give or take also at the level of loss that we have in a year... Yeah, in the ballpark, yeah.

Nitesh Dutt · Burman Capital

partial

Percentage of India manufacturing in-house vs outsourced and supplier base fragmentation.

So right now, about 60% of what we do is in-house, and likely that these numbers will increase in the future because we did, we do, have localizations of, of some of these products, in the future. As for the numbers of partners, I don't recall the exact number, but I'm assuming that it's in double digits.

Surya Patra · PhillipCapital

declined

Pricing trend and sustainability for generic Revlimid.

So I'm not going to discuss quantities or prices of this product, as you know. I just said, I'm not going to discuss pricing or quantities of this product. We need to remain confidential to our agreements. And what we can say is that it's going to stay meaningful product for us throughout the period of Revlimid.

Surya Patra · PhillipCapital

direct

Revenue mix target for domestic formulation business over three years.

The expectation of both businesses, if you ask about the long term, is to be top five in India. If you want an assumption, it's in the neighborhood of around INR 12,000 crore, somewhere in FY 2030. But this is obviously a neighborhood that we are striving to be.