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Revlimid Patent Loss Hits Indian Drug Margins
15 Jan
Summary
- Indian drugmakers face muted margins due to Revlimid patent expiry.
- US generic Revlimid prices are expected to decline sharply.
- Domestic growth and other markets may offset US sales decline.
As India's pharmaceutical sector begins its earnings season for the quarter ending December 2025, a notable impact on margins is anticipated. The primary driver for this forecast is the expiration of patent exclusivity for the significant blood cancer drug, Revlimid, in the United States. While this event is projected to reduce overall US sales, robust domestic growth and ongoing momentum in other business segments may cushion the blow.
Several Indian pharmaceutical firms, including Dr. Reddy's, Cipla, Zydus Lifesciences, and Sun Pharma, had entered into agreements to sell Revlimid in limited quantities until its patent expiry in January 2026. These companies are now expected to experience declining sales throughout fiscal year 2026 as they offload their remaining quotas, leading to anticipated margin erosion in the current quarter. Increased R&D expenses and administrative costs further contribute to margin pressures.
Despite the challenges posed by Revlimid's patent loss and US generic price competition, the sector anticipates steady revenue growth. Excluding the impact of Revlimid, US generic sales are projected to see modest growth, driven by existing product volumes and recent launches. Furthermore, a strong performance in the domestic market, particularly in the chronic segment, is expected to provide a significant boost to overall sector revenue.
