Street View - India's Dr Reddy's facing pricing pressure and competition

Drugmaker Dr Reddy's REDY.NS reported an 86% slump in quarterly profit on Tuesday, weighed down by impairment charges from a discontinued cancer therapy program, pricing pressures, and intensifying competition in its key U.S. market.

Shares up 0.4% a 1,274.60 rupees

WEAK Q4 AMID U.S. PRESSURES AND THIN PIPELINE

Jefferies ("Underperform"; PT: 1,040 rupees) says March quarter was weak and missed estimates even after adjusting for impairment charges

Brokerage highlights Canadian approval for co's generic semaglutide is a near-term positive but cuts sales estimate from $150 million to $100 million

Citi ("Sell"; PT: 1,070 rupees) notes core profitability and U.S. revenue remain under pressure, while strong growth in non-U.S. markets appears increasingly cost-funded and margin-dilutive

Goldman Sachs ("Sell"; PT: 1,050 rupees) cautions that generic semaglutide opportunity in Canada may fall short of street expectations; highlights thin near-to-medium-term pipeline for higher-value products