Dr Reddy’s gets regulatory nod to sell generic Ozempic in India, targets 12 million pens in first year

By Rishika Sadam and Kashish Tandon

HYDERABAD, Jan 21 (Reuters) – Indian drugmaker Dr Reddy’s, which reported a smaller-than-expected fall in quarterly profit on Wednesday, said that it has received an approval from the country’s drug regulator to manufacture and sell the generic version of blockbuster diabetes drug Ozempic.

The company plans to sell 12 million injectable Semaglutide pens in the first year of launch.

The patent for Semaglutide, the active ingredient in Novo Nordisk’s drugs Wegovy and Ozempic, expires in March 2026, allowing Reddy’s and other Indian generic drugmakers, racing to grab a share of the booming weight-loss market, to launch generic versions of the drugs.

Ozempic is also used off-label for weight loss due to its appetite-suppressing effects.

M V Ramana, CEO of branded markets, said that while they have approval for the generic Ozempic for diabetes, they are still awaiting the regulator’s nod for the obesity drug Wegovy.

U.S. drugmaker Eli Lilly and Novo launched Mounjaro, Wegovy, and Ozempic in India last year, with sales doubling shortly after launch.

Reddy’s plans to collaborate with local partners in India for the Semaglutide launch and has sufficient production capacity to meet demand, Ramana said on a media call on Wednesday.

The company also aims to launch Semaglutide in Canada this year, and also in emerging markets.

Semaglutide sales are expected to be a key growth driver for Reddy’s domestic business. The company has been expanding its India operations with new product launches and collaborations, contributing to a smaller-than-expected profit decline.

Revenue from the company’s India business rose 19% to 16.03 billion rupees, aided by price hikes and contributions from Johnson & Johnson’s anti-vertigo therapy brand Stugeron, acquired in September.

Consolidated net profit fell 14.4% to 12.1 billion rupees ($132 million) in the quarter ended December 31, surpassing analysts’ average estimate of a fall to 10.70 billion rupees, according to LSEG data.

The profit decline, the first in five quarters, is due to slowing sales of Lenalidomide, a generic version of Bristol-Myers Squibb’s cancer drug Revlimid, which has faced pricing pressure in the U.S. and stiff competition.

Total revenue from operations rose 4.4% to 87.53 billion rupees, exceeding analysts’ estimate of 84.17 billion rupees.

(Reporting by Rishika Sadam and Kashish Tandon; Editing by Janane Venkatraman and Shailesh Kuber)