12 Best Low Price Pharma Stocks To Invest In Right Now

9. Dr. Reddy’s Laboratories Limited (NYSE:RDY)

Share Price as of the Close of February 21: $13.35

Dr. Reddy’s Laboratories Limited (NYSE:RDY) is a global pharmaceutical company that develops, manufactures, and markets over 190 medications, including generics, biosimilars, and over-the-counter products across therapeutic areas like oncology, cardiovascular, and dermatology.

Dr. Reddy’s Laboratories Limited (NYSE:RDY) reported strong Q3 FY25 results on January 23, 2025, with consolidated revenue reaching ₹8,359 crores ($977 million), a 16% YoY increase. Gross profit margin improved slightly to 58.7%, and EBITDA grew 9% YoY to ₹2,298 crores ($269 million). Net profit saw a modest 2% rise to ₹1,413 crores ($165 million). This growth was driven by the successful integration of the Nicotine Replacement Therapy (NRT) business, new product launches, and better operational efficiencies. Without the NRT acquisition, underlying revenue growth stood at 7.5%.

Dr. Reddy’s Laboratories Limited (NYSE:RDY) performed well across different markets. North America generics revenue remained flat at $401 million due to price erosion and competition. European generics saw an impressive 142% YoY growth, reaching $134 million, thanks to the NRT portfolio. Emerging markets grew by 12% YoY to ₹1,436 crores, while the India business posted a solid 14% YoY increase to ₹1,346 crores.

Despite these gains, investors should be mindful of risks such as rising competition in key markets, particularly in the US, and regulatory challenges. The recent US FDA inspection at the Hyderabad facility resulted in a Form 483 with seven observations, which could impact future operations.