🔻 Dr Reddy’s Shares Fall 6% After Canada’s Non-Compliance Notice for Semaglutide Injection

Shares of Dr Reddy’s Laboratories plunged nearly 6% to ₹1,180.90 on October 30, hitting a five-month low, after the pharma major received a non-compliance notice from Health Canada for its Semaglutide Injection. The stock was the top loser on the Nifty Pharma Index, which fell 0.7%. In an exchange filing, the company clarified that the notice relates to its Abbreviated New Drug Submission (ANDS) for the Semaglutide Injection and includes requests for additional information and clarifications. Dr Reddy’s stated it will respond within the stipulated timeframe, adding that it remains confident in the quality and safety of its proposed product and is committed to launching it in Canada and other markets “at the earliest.” Analyst View: According to JP Morgan, the regulatory setback could delay the planned January 2026 launch, eroding the company’s first-mover advantage in Canada and impacting potential revenues of $30 million in FY26 and $100 million in FY27. Emkay Global also anticipates a six-month delay in the product rollout. Impact on Partners: Following the announcement, Shaily Engineering Plastics, a key supplier to Dr Reddy’s, saw its shares plunge over 17% to ₹2,115, as the drugmaker is listed among its top pharma clients. Recent Financials: Dr Reddy’s had earlier reported a 7% YoY rise in Q2FY26 net profit to ₹1,347 crore, below market expectations of ₹1,450 crore, due to competition in generic Revlimid sales in North America. Revenue, however, rose 10% YoY to ₹8,828 crore, beating estimates of ₹8,700 crore. 📊 #DrReddys #Semaglutide #PharmaStocks #HealthCanada #StockMarket #BSE #NSE #Wegovy #Ozempic #EarningsUpdate #ShailyEngineering #NiftyPharma #IndianMarkets