July 9 (Reuters) – Shares of Dr Reddy’s Laboratories fell as much as 6.5% on Thursday, after the Indian drugmaker said it is delaying commercial supplies of semaglutide due to an issue related to the active pharmaceutical ingredient used in the drug.
Dr Reddy’s shares, trading 5.6% lower at 1,274 rupees in Mumbai, were on course for their steepest loss since May 2023, weighing on the pharmaceutical index, which was up 1.2%.
Semaglutide is the key ingredient in Novo Nordisk’s blockbuster diabetes and obesity medicines. More than half a dozen Indian drugmakers have launched lower-cost copies of Novo Nordisk’s Ozempic and Wegovy, vying for a share of the fast-growing global obesity treatment market.
Dr Reddy’s launched its semaglutide brand Obeda earlier this year, joining peers Zydus Lifesciences and Sun Pharma that have also launched generic semaglutide brands, intensifying competition in the country which has the second-biggest diabetic population.
These drugmakers have launched their products at prices up to 70% lower than Novo Nordisk’s Ozempic. Demand for the drugs plateaued in June, according to research firm Pharmarack.
Dr Reddy’s, in a statement to exchanges, said that certain batches of semaglutide were found to be “out of specification” and that it was investigating the root cause and taking measures to ensure product quality.
The drugmaker did not specify until when the supply disruption would last and did not disclose further details.
“There is no impact on patient safety or on the product’s existing global regulatory filings,” the firm said.
(Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
