Dr. Reddy`s Laboratories Ltd. - ADR

**Financial Performance Highlights**: Dr. Reddy’s reported record revenues of over $3.3 billion for FY2024, marking a 14% year-on-year growth. Q4 revenues reached $850 million, a 12% increase year-on-year. However, there was a sequential decline of 2% in the last quarter, primarily due to drop in revenues from Russia, the U.S., and India.

**R&D Investments and Future Pipeline**: R&D spending surged to INR 688 crores ($83 million) in Q4, up 28% YoY, indicating a commitment to complex products and biosimilars. For FY2025, the R&D budget is projected at around 8.5%-9% of sales, expected to drive growth in small molecules over the medium term. Product contributions from this pipeline are anticipated to start materializing from FY2025 onwards.

**Impact of Generic Revlimid and Price Erosion**: The North America Generics business saw a 26% increase YoY, totaling revenues of $392 million in Q4. However, sequential declines influenced by price erosion were reported, with competition affecting key product prices, highlighting ongoing market challenges.