The pharmaceutical industry had escaped the first wave of the Trump government’s higher import tariffs that were announced in early April, and all eyes were on the March 2025 quarter results of leading Indian players, in a bid to see if they had ramped up exports to this key export market. Sales to the US market typically account for 25-30 % of total sales of leading Indian pharma exporters and investors on Dalal Street are closely monitoring the results and accompanying management commentary, in a bid to see how these companies will grow their sales in this key market over the next few quarters.
Cipla, declared its fourth quarter of FY 25 results on Friday, and this leading pharma exporter highlighted that its sales in North America amounted to $ 221 million (nearly Rs 1,880 crore) in the quarter under review, a fall of 2% compared to a year earlier.
Meanwhile, in the case of Dr Reddy’s Laboratories, it reported North America generics sales of Rs 3,558.6 crore in the March 2025 quarter, a rise of 9 % on a y-o-y basis. The Hyderabad-based company highlighted that it had launched seven new products in the US market in the fourth quarter of FY 25 and it included a partnership with Shanghai Henlius Biotech, to commercialize HLX15 (daratumumab biosimilar) in US and Europe. The above medication is used for the treatment of multiple myeloma.
And, in the case of Biocon, in its generics business, operating revenues of Rs 1,048 crore in the March 2025 quarter was the strongest quarterly performance, with a growth of 46% on a y-o-y basis. The Bangalore-based company has not provided revenue data for different markets including North America however, it has highlighted that the above quarterly performance was driven by the launch of Lenalidomide and Dasatinib in the US. Lenalidomide is used to treat multiple myeloma while Dasatinib is used for treatment of certain type of chronic myeloid leukemia.
Also, in its Syngene business, which is an innovation-led contract research, development and manufacturing organization, an earlier acquisition of biologics facility in the US helped its operating revenue rise to Rs 1,018 crore in the March 2025 quarter, a rise of 11 % y-o-y. Syngene’s quarterly operating revenue crossed the Rs 1,000 crore threshold for the first time in the March 2025 quarter, it was highlighted.
Financial performance and growth outlook
Cipla’s consolidated revenue from operations amounted to Rs 6,729.7 crore in the fourth quarter of FY25, a rise of 9.2 % on a y-o-y basis while its consolidated net profit grew 30.4 % y-o-y to Rs 1,214 crore. The company benefited from a lower tax burden in the quarter under review. Cipla has highlighted that it has received approval for Nano Paclitaxel – 100 mg/vial in North America in April 2025 and it is anti-cancer medication. In addition, it has got approval for Nilotinib Capsules in North America in February 2025 and it is used for treating a certain type of blood cancer.
Meanwhile, Dr Reddy’s Laboratories’ consolidated revenues grew 20% y-o-y to Rs 8,506 crore in the March 2025 quarter while its consolidated net profit rose 21.4 % y-o-y to Rs 1587 crore. Dr Reddy’s Laboratories has highlighted that it has received biologics license application acceptance for AVT03 (denosumab biosimilar) developed by its partner, Alvotech for the US market and this medication is used for strengthening bones for patients. It has also received marketing authorization for rituximab biosimilar from UK MHRA and this medication is used for lymphomas, leukaemias, transplant rejection and autoimmune disorders.
Investors on Dalal Street
Trump administration has announced an executive order relating to giving pharma companies 30 days to slash prices between 59 to 80 per cent. The above move is expected to hit global pharma companies like AstraZeneca and Pfizer the hardest since they are involved in researching and developing original medications. Indian pharma players largely export low-cost generic versions of medications and the impact is still being analysed.
Cipla ended Tuesday’s trade at Rs 1,519.5 and it trades with a P/E of 19 times estimated consolidated FY26 earnings. Dr Reddy’s Laboratories at Rs 1,206 trades at a P/E of 17 times estimated consolidated FY 26 earnings. Investors could wait and watch the impact of the Trump government’s policies on the Indian pharma sector.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
Disclaimer: The writer and his dependents have no holding in the stocks discussed in this article.
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