Dr Reddy’s Laboratories shares drop sharply after the company informs stock exchanges that certain batches of its semaglutide product are out of specification due to an issue related to the active pharmaceutical ingredient (API) used in those batches. Multiple outlets report declines of about 4% to 7% in early trading, with one report noting a fall of around 6.5% to Rs 1,261 on the BSE. The company says an investigation is underway to identify the root cause and that corrective measures are being taken to ensure product quality. Several reports also state that commercial supplies of semaglutide will be delayed until the issue is resolved, raising concerns about availability. The company further clarifies that the development does not impact patient safety or its existing global regulatory filings. The disclosures are consistent across outlets: a quality concern tied to API results in batches being out of specification, and the company moves to prevent further impact by pausing deliveries until quality checks are completed.
Dr Reddy’s shares fall on semaglutide batch quality issue and supply delays
Dr Reddy’s Laboratories shares drop sharply after the company informs stock exchanges that certain batches of its semaglutide product are out of specification due to an issue related to the active pha...
- Dr Reddy’s says certain semaglutide batches are found out of specification due to an API-related issue.
- The company reports that commercial supplies of semaglutide will be delayed until the quality issue is resolved.
- An investigation is underway to identify the root cause, and appropriate measures are being taken to ensure product quality.
- Dr Reddy’s states the issue does not affect patient safety or its existing global regulatory filings.
- Dr Reddy’s shares fall by roughly 4% to 7% following the announcement.
Shares of Dr Reddy's Laboratories fell 6.5% to Rs 1,261 on the BSE on Thursday after the company said commercial supplies of its semaglutide product will be delayed following a quality-related issue linked to the active pharmaceutical ingredient (API) used in certain batches.In an exchange filing, the company said certain batches of semaglutide were found to be out of specification due to an issue associated with the API used in the product. It added that an investigation is underway to identify the root cause and that appropriate measures are being taken to ensure product quality.Dr Reddy's said commercial supplies of the product will be delayed until the issue is resolved. The company clarified that the development has no impact on patient safety or on the product's existing global regulatory filings. It also reiterated its commitment to ensuring reliable global supplies of the metabolic therapy.Also read: Margin revival, Semaglutide launch to drive Dr Reddy’s growth momentum in FY27Dr Reddy's further said its management will host a conference call to discuss the development and answer questions from participants.The disclosure comes less than two months after Dr Reddy's commercially launched its oral semaglutide tablet under the brand name Obeda in India for the treatment of type-2 diabetes. The once-daily oral drug is available in 3 mg, 7 mg and 14 mg strengths, priced at Rs 99, Rs 135 and Rs 225 per tablet, respectively.The company had positioned the launch as a key milestone in building its GLP-1 portfolio after also becoming one of the first companies to launch a generic once-weekly injectable semaglutide in India following the expiry of the relevant patent earlier this year.Dr Reddy’s Q4 snapshotThe pharma giant reported 86% year-on-year (YoY) decline in consolidated net profit to Rs 221 crore for the January-March quarter of FY26, as against Rs 1,587 crore in the year-ago period, leading to target price cuts by brokerages.Its revenue from operations, meanwhile, fell 12% YoY to Rs 7,516 crore during the quarter under review, from Rs 8,506 crore reported in the corresponding quarter of the previous financial year.Read more: Dr Reddy’s launches generic Semaglutide injection, popular weight-loss drug, in CanadaThe decline in quarterly earnings was primarily on account of reduced sales of Lenalidomide, price erosion in North America and Europe Generics and a one-time SSA impact.Dr Reddy’s share price has remained flat in 2026, up 2% YTD. In the last 5 years, the stock has delivered a return of 17%. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
4 hours agoDr Reddy's informed stock exchanges that certain batches of semaglutide were found to be out of specification due to an issue associated with the active pharmaceutical ingredient used in the product.
4 hours agoDr Reddys Laboratories shares dropped over 4% after a batch of semaglutide was found out of specification due to an active pharmaceutical ingredient issue.
5 hours agoDr Reddys Laboratories shares dropped over 4% after a batch of semaglutide was found out of specification due to an active pharmaceutical ingredient issue.
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