Amid growing concerns over potential U.S. import tariffs on drugs, Indian general giant Dr. Reddy’s lab is taking steps to ensure its access to the supply chain of key products for the U.S. market, CEO Erez Israeli said.
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Israel said: “The main focus is on potential disruptions to supply…Most of the activities we are doing now work closely with our customers and create relevant inventory, services, orders and all activities that enable us to provide good service.”
Israel spoke in a media briefing on Friday after the company released its 4-quarter 25 results.
Dr. Reddy completed the divestment of his manufacturing plant in Shreveport, Louisiana in the January-March quarter of FY25. Israel said it had nothing to do with tariffs. “The facility is not able to meet our needs in terms of products and activities that are not related to tariffs,” he said.
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Israel said the drugmaker is willing to invest in U.S. manufacturing, but no feasible opportunities have been identified at this stage.
U.S. President Donald Trump’s import tariffs on key products underline his “Made in the United States” agenda. Although drugs are still exempt, Trump said potential tariffs against the industry in the future may be targeted.
“Our balance sheet is very good, our financial capabilities are very healthy. We are always looking for opportunities,” Israel invests in the United States. He added: “We are not in a hurry to make any commitments … but we certainly want to get into the United States for a long time. We will look for opportunities for us.”
For the fourth quarter, in fiscal 25, Dr. Reddy’s revenue grew 20% year-on-year ₹85,06 million ₹A year ago, $708.3 billion, beat estimates. Profits increased by 22% year-on-year ₹15.94 million.
Income includes ₹Rs 597 crore obtained from the Consumer Healthcare Business (NRT) obtained from Nicotine Replacement Therapy (NRT). Excluding the NRT business, the underlying growth increased by 12% year-on-year, and 2% in the quarter-quarter.
For the entire fiscal year of fiscal 25, the company’s revenue jumped 17% ₹325.53 million.
The company said the performance was driven by the contribution of the acquired NRT business, with steady growth in its core businesses including global generic and pharmaceuticals and positive ingredients (PSAI).
Dr. Reddy continues to integrate the NRT portfolio acquired from Europe’s Haleon Plc, with the UK being the first country to see integration. “We should have most countries where the system or distributors operate. At the same time, we are focused on how to grow our business by innovating, increasing the country and improving the operational activities of this franchise. So overall, we are very optimistic about NRT,” Israeli said.
The company aims to launch 18-20 products in fiscal 26. It is also strengthening its biosimilar footprint and hopes to enter Europe and the United States in the coming years.
“We are preparing for a launch [our] Israel said.
In FY26, Dr. Reddy hopes to continue its momentum by adding bases, even if it faces exclusive loss of cancer drugs. Israel said other drugs, including GLP-1 and its biosimilars, would be important opportunities.
