Synopsis
Shares of Dr Reddy fell sharply on Thursday after the company delayed commercial shipments of its semaglutide product due to a quality issue involving the active pharmaceutical ingredient (API). The company said patient safety and regulatory records are not affected, while an investigation is underway to identify the root cause and restore supplies.
ETMarkets.comActions of Dr. Reddy’s Laboratories fell 6.5 per cent to Rs 1,261 on the BSE on Thursday after the company said commercial supplies of its semaglutide product would be delayed following a quality issue related to the active pharmaceutical ingredient (API) used in some batches.
In an exchange filing, the company said some batches of semaglutide were found to be out of specification due to an issue associated with the API used in the product. He added that an investigation is underway to identify the root cause and appropriate measures are being taken to ensure product quality.
Dr. Reddy’s said commercial deliveries of the product will be delayed until the issue is resolved. The company clarified that the development has no impact on patient safety or the product’s existing global regulatory records. He also reiterated his commitment to ensuring a reliable global supply of metabolic therapy.
Also read: Margin Recovery and Semaglutide Launch to Drive Dr. Reddy’s Growth Momentum in FY27
Dr. Reddy’s further said that his management would hold a conference call to discuss the development and answer questions from the participants.
The disclosure comes less than two months after Dr. Reddy’s commercially launched its semaglutide oral tablet under the Obeda brand in India for the treatment of type 2 diabetes. The once-a-day oral drug is available in strengths of 3 mg, 7 mg and 14 mg, priced at Rs 99, Rs 135 and Rs 225 per tablet, respectively.
The company had positioned this launch as a key milestone in building its GLP-1 portfolio after also becoming one of the first companies to launch a once-weekly injectable generic semaglutide in India following the expiration of the corresponding patent earlier this year.
Dr. Reddy’s Fourth Trimester OverviewThe pharmaceutical giant reported an 86 per cent year-on-year (YoY) decline in consolidated net profit at Rs 221 crore for the January-March quarter of FY26, compared to Rs 1,587 crore in the year-ago period, leading to target price cuts by brokerages.
Its operating revenue, meanwhile, fell 12 per cent year-on-year to Rs 7,516 crore in the quarter under review, compared to Rs 8,506 crore reported in the corresponding quarter of the previous fiscal.
Learn more: Dr. Reddy’s launches generic injection of popular weight loss drug semaglutide in Canada
The decline in quarterly profit was mainly due to reduced sales of Lenalidomide, erosion of generic prices in North America and Europe and a one-time impact on SSA.
Dr. Reddy’s stock price has remained stable in 2026, up 2% year-to-date. Over the past 5 years, the stock has returned 17%.
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