Dr Reddy’s shares slide 7% after delay in semaglutide supplies over quality concerns

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 snapshot

The 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 Canada

The 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%.

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