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India's Dr Reddy's says open to boosting U.S. manufacturing as tariff threat looms
By Rishika Sadam and Kashish Tandon - 5/9/2025
By Rishika Sadam and Kashish Tandon
HYDERABAD (Reuters) -India's Dr Reddy's Laboratories, one of country's largest generic drugmakers, said that it is open to expanding its manufacturing footprint in the key U.S. market as tariff threat looms.
"We are more than open to work in the United States, to make in the United States when the opportunity comes," CEO Erez Israeli said in a press call on Friday.
"We want to invest (in the U.S.)... we are not rushing, and we are not obliged to any commitment," he said, adding that the company is also working to avoid any potential disruption to its supply chain that tariffs, if imposed, could lead to.
India's drugmakers that derive significant revenue from North America through their cheaper version of innovator drugs are on tenterhooks about U.S. tariffs on pharma imports.
The Trump administration, which initially spared the sector from any kind of duties, is likely to make an announcement on tariffs in the coming weeks.
The company, which sold its subsidiary and manufacturing facility in Louisiana in March, said it now just has a niche plant in New York.
Reddy's on Friday reported a fourth-quarter profit that beat analysts' expectations, helped by new drug launches in oncology and other chronic therapy areas and has 20 new launches in the pipeline for FY26, it said. Consolidated net profit increased to 15.93 billion rupees (nearly $187 million) in the quarter ended March 31, beating estimates of 14.91 billion rupees, as per data compiled by LSEG.
Total revenue increased 20% to 82.11 billion rupees.
Revenue from North America, its biggest market, rose 9% to 35.59 billion rupees, while revenue in Europe more than doubled to 12.76 billion rupees driven by demand for nicotine replacement therapy, which Dr Reddy's bought from British drugmaker Haleon last year.
Rival Cipla is set to report fourth-quarter results next week. ($1 = 85.3790 Indian rupees)
(Reporting by Rishika Sadam and Kashish Tandon; Editing by Savio D'Souza and Shailesh Kuber)