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Shares of Dr Reddy’s hit a five-month low as analysts said that the recent development can delay the launch of its new injection
Dr Reddy’s Share Price
Dr Reddy’s Share Price: Shares of Dr Reddy’s Laboratories slipped to Rs 1,180.90 apiece in early trade, the lowest level in over five months, making it the top loser on the Nifty Pharma index, which was down 0.7 percent.
The decline came after the company disclosed in an exchange filing that it received a non-compliance notice from Canadian authorities related to its Abbreviated New Drug Submission (ANDS) for Semaglutide injection. The notice seeks additional information and clarifications on specific parts of the submission.
Dr Reddy’s said it will respond promptly within the stipulated timeframe. “We remain confident in the quality, safety and comparability of our proposed product and are committed to bringing this important therapy to patients in Canada and other markets at the earliest,” the company said, adding that it will provide further updates when necessary.
What analysts say
Analysts cautioned that the regulatory setback could delay the planned launch of Dr Reddy’s Semaglutide injection — the active ingredient in Novo Nordisk’s blockbuster weight-loss drug Wegovy and diabetes treatment Ozempic.
JP Morgan noted that the development could push back Dr Reddy’s anticipated first-to-market launch from January 2026, weakening its first-mover advantage. The brokerage estimates that the delay could put at risk roughly $30 million in potential FY26 revenue and nearly $100 million in FY27 revenue from the Canadian Semaglutide opportunity.
Emkay Global expects a six-month delay in the product launch.
Shares of Shaily Engineering Plastics fell over 17 percent to Rs 2,115 after the news. According to its FY25 annual report, Dr Reddy’s is among its major clients in the pharmaceutical segment.
Dr Reddy’s Q2 results
On October 24, Dr Reddy’s reported a 7 percent year-on-year rise in consolidated net profit to Rs 1,347.1 crore for Q2 FY26, below brokerage estimates of Rs 1,450 crore.
The company’s profit was weighed down by intense competition for the generic version of cancer drug Revlimid in North America.
Revenue from operations rose nearly 10 percent year-on-year to Rs 8,828 crore, exceeding expectations of around Rs 8,700 crore and higher than Rs 8,038 crore reported in the year-ago period.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 30, 2025, 12:28 IST
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