Dr Reddy's stock could rise 10-15% if a major biosimilar gets approved in December: Systematix

What happened

Systematix analyst Vishal Manchanda said Dr Reddy's stock could rise 10-15% if a major drug approval happens in December 2026. Dr Reddy's has resolved semaglutide manufacturing challenges and is ready to resume supplies, and its domestic business is doing well.

Confirmed

Global impact / market context

A 10-15% stock gain would depend on one approval with limited competition, which means fewer rivals selling the same drug. That approval could lift Dr Reddy's revenue and profit, while without it the stock likely stays near current levels despite improved manufacturing and domestic sales.

Analyst inference

The analyst expects Dr Reddy's numbers to improve gradually rather than jump at once. Investors appear to be waiting for the December 2026 approval before paying up for the potential sales boost, so the stock may not move much on current earnings alone.

Analyst inference

What to watch

1. Watch whether the major drug approval arrives in December 2026, since Systematix ties a potential 10-15% stock rise to that event. Confirmed
2. Track whether Dr Reddy's actually resumes semaglutide supplies as stated, because the analyst presents this as the main positive from recent earnings. Proposed
3. Monitor whether limited competition holds for the approved drug, which means few sellers, because broader competition could weaken the expected sales and profit boost. Analyst inference

Evidence

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