The Indian pharmaceutical industry is bracing for a challenging earnings season in Q3, with expectations of muted margins due to the loss of patent exclusivity for the blockbuster blood cancer drug Revlimid in the US. Revlimid, which has generated over $100 billion in global sales, has been a significant revenue and margin driver for Indian drugmakers such as Dr Reddy’s Laboratories, Cipla, Zydus Lifesciences, and Sun Pharma. However, with the patent expiry in January 2026, these companies will have to offload their remaining quotas, leading to a decline in sales.<\/p>\n
Analysts expect a sector-wide decline in earnings before interest, taxes, depreciation, and amortization (Ebitda) margins by 150 basis points year-on-year, with companies such as Dr Reddy’s, Cipla, and Zydus Lifesciences likely to be affected. The decline in Revlimid sales will be a significant contributor to this margin pressure, with prices expected to erode sharply as players look to offload remaining quotas. Additionally, other factors such as increased generic price competition in the US market, higher research and development (R&D) expenses, and rising selling, general, and administrative (SG&A) costs will also weigh on margins.<\/p>\n
Despite these challenges, analysts remain optimistic about the sector’s overall revenue growth, with expectations of 8-11% growth driven by steady domestic growth and traction in other markets. Domestic sales are projected to outpace the broader Indian pharmaceutical market’s 10.1% growth, with the chronic segment showing particular strength. Companies such as Lupin, Sun Pharma, and Cipla are expected to see growth driven by their innovative medicines portfolios and recent launches.<\/p>\n
The US market, however, is expected to be a challenge, with overall US sales projected to decline by 4% quarter-on-quarter due to lower Revlimid sales. Excluding Revlimid, US generic sales are forecast to grow by 2% quarter-on-quarter, driven by volume expansion in existing products and the benefits from recent launches. Overall, while the loss of Revlimid patent exclusivity will be a significant challenge for Indian pharmaceutical companies, their domestic growth and innovative medicines portfolios are expected to provide some resilience and drive overall revenue growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Indian pharmaceutical industry is bracing for a challenging earnings season in Q3, with expectations of muted margins due to the loss of patent exclusivity for the blockbuster blood cancer drug Revlimid in the US. Revlimid, which has generated over $100 billion in global sales, has been a significant revenue and margin driver for Indian […]<\/p>\n","protected":false},"author":1,"featured_media":88150,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17,20,2,16,19],"tags":[],"class_list":["post-89806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cipla","category-lupin","category-pharma","category-sun-pharma","category-zydus"],"jetpack_featured_media_url":"https:\/\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":89862,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/26\/several-major-indian-pharmaceutical-companies-including-sun-pharma-cipla-zydus-and-graviti-have-issued-recalls-for-certain-medications-in-the-united-states-market\/","url_meta":{"origin":89806,"position":0},"title":"Several major Indian pharmaceutical companies, including Sun Pharma, Cipla, Zydus, and Graviti, have issued recalls for certain medications in the United States market.","author":"Team Small News","date":"January 26, 2026","format":false,"excerpt":"Several major pharmaceutical companies, including Sun Pharma, Cipla, Zydus, and Graviti Pharmaceuticals, are recalling various products in the US due to manufacturing issues, according to recent US FDA enforcement reports. The recalls are primarily related to problems with impurities, quality control, and production processes. 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Revlimid, a blood cancer treatment, has been a significant contributor to\u2026","rel":"","context":"In "Dr Reddy's"","block_context":{"text":"Dr Reddy's","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/dr-reddys\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":89789,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/12\/delhi-high-court-grants-permission-to-zydus-to-market-nivolumab-biosimilar-a-cancer-treatment-drug-in-india\/","url_meta":{"origin":89806,"position":2},"title":"Delhi High Court grants permission to Zydus to market Nivolumab biosimilar, a cancer treatment drug, in India.","author":"Team Small News","date":"January 12, 2026","format":false,"excerpt":"The Delhi High Court has allowed Zydus Lifesciences to sell and market its biosimilar version of the anti-cancer drug nivolumab in India, despite a patent infringement suit filed by the innovator and patent holder, E.R. 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The court modified a previous order that had restrained the launch\u2026","rel":"","context":"In "Pharma"","block_context":{"text":"Pharma","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/pharma\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":89809,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/16\/indian-pharma-q3-preview-strong-domestic-formulations-segment-to-offset-us-pricing-challenges-scanx-trade\/","url_meta":{"origin":89806,"position":3},"title":"Indian Pharma Q3 Preview: Strong Domestic Formulations Segment to Offset US Pricing Challenges – scanx.trade","author":"Team Small News","date":"January 16, 2026","format":false,"excerpt":"The Indian pharmaceutical industry is expected to experience a mixed bag in the third quarter of the year, with domestic formulations likely to counterbalance the pressure from pricing in the US market. The sector's growth is anticipated to be driven by a strong performance in the domestic market, which is\u2026","rel":"","context":"In "Dr Reddy's"","block_context":{"text":"Dr Reddy's","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/dr-reddys\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/04\/Dr.Reddys_logo.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":89683,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2025\/12\/19\/zydus-lifesciences-partners-to-introduce-diagnostic-tests-for-cancer-risk-evaluation-in-indian-market\/","url_meta":{"origin":89806,"position":4},"title":"Zydus Lifesciences Partners to Introduce Diagnostic Tests for Cancer Risk Evaluation in Indian Market","author":"Team Small News","date":"December 19, 2025","format":false,"excerpt":"Zydus Lifesciences Limited is a global life sciences company based in India that is involved in the discovery, development, manufacture, and marketing of a wide range of healthcare therapies. The company operates in the business of integrated pharmaceutical operations, offering a diverse product portfolio that includes active pharmaceutical ingredients (API),\u2026","rel":"","context":"In "Pharma"","block_context":{"text":"Pharma","link":"https:\/\/smallnews.in\/pharmaceuticals\/category\/pharma\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/smallnews.in\/pharmaceuticals\/wp-content\/uploads\/sites\/6\/2025\/05\/Zydus-Logo.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":89869,"url":"https:\/\/smallnews.in\/pharmaceuticals\/2026\/01\/27\/zydus-lifesciences-introduces-indias-first-biosimilar-version-of-nivolumab-a-global-breakthrough\/","url_meta":{"origin":89806,"position":5},"title":"Zydus Lifesciences introduces India’s first biosimilar version of Nivolumab, a global breakthrough.","author":"Team Small News","date":"January 27, 2026","format":false,"excerpt":"Zydus Lifesciences, a leading life sciences company, has launched the world's first biosimilar of nivolumab in India under the brand name Tishtha. This milestone marks a significant expansion of patient access to cutting-edge cancer therapies, particularly in the field of Immuno-Oncology. 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