Dr Reddy’s Laboratories Ltd. TO RESUME SEMAGLUTIDE

Dr Reddy’s Laboratories is preparing to resume semaglutide supplies across key international markets from November after resolving manufacturing challenges that delayed the product’s rollout earlier this year. Canada is expected to contribute the largest share of initial sales volumes as the company looks to meet demand that built up during the temporary suspension. During a media interaction, the company’s management confirmed that it had addressed issues related to the production scale-up of semaglutide active pharmaceutical ingredient. Management said the company had voluntarily suspended marketing activities when the scale-up problem emerged rather than continuing sales amid production challenges. With the issue now resolved, Dr Reddy’s is preparing to re-enter the affected markets. The manufacturing disruption had a financial impact in the June quarter, when the company recorded a provision of Rs 240 crore towards inventory and other costs associated with the semaglutide API issue. However, management does not anticipate a similar financial burden in the coming quarters. The Hyderabad-based pharmaceutical company has secured semaglutide approvals in 10 countries, including India and Canada. Eight of these approvals are from emerging markets across Latin America, Africa and the Middle East, providing scope for further international expansion. Canada is expected to be the primary market during the initial phase of the relaunch. Dr Reddy’s plans to resume supplies in the current quarter and cater to demand that accumulated while the product was temporarily withdrawn.