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India's Dr Reddy's says open to boosting U.S. manufacturing as tariff threat looms
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India's Dr Reddy's says open to boosting U.S. manufacturing as tariff threat looms
May 26, 2025 5:09 AM

By Rishika Sadam and Kashish Tandon

HYDERABAD, May 9 (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 ( HLN ) last year.

Rival Cipla is set to report fourth-quarter

results next week.

($1 = 85.3790 Indian rupees)

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