India’s Dr Reddy’s falls as weight-loss drug faces regulatory setback in Canada

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(Reuters) -Shares of Indian generic drugmaker Dr Reddy’s Laboratories declined more than 5% on Thursday, after the firm received a non-compliance notice for its semaglutide injection in Canada, which analysts say could delay its launch.

The shares fell as much as 5.6% to 1,180.9 rupees as of 9.25 a.m. IST and were the top losers on India’s benchmark Nifty 50 index and the pharma index, which were down 0.26% and 1.1%, respectively.

U.S.-listed shares of Dr Reddy’s fell 8% overnight.

Semaglutide is the active ingredient of Denmark-based Novo Nordisk’s blockbuster weight-loss drug Wegovy and diabetes medicine Ozempic.

Dr Reddy’s received a non-compliance notice from the Pharmaceutical Drugs Directorate of Canada for its semaglutide injection on Wednesday, seeking additional information and clarifications for its regulatory submission for the new drug.

Analysts at JP Morgan said the development is expected to delay the planned first-to-market launch in January 2026, eroding Dr Reddy’s first-mover advantage and puts at risk forecasted Canadian semaglutide revenues of $30 million for fiscal year 2026 and $100 million for the financial year 2027.

Analysts at Emkay Global expect a six-month delay in the launch of the injections in Canada.

(Reporting by Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala)