Dr. Reddy’s Shares Plunge Over 5% After Canada Flags Non-Compliance for Semaglutide Injection
Shares of Indian drugmaker Dr. Reddy’s Laboratories tumbled over 5% on Thursday after the company received a non-compliance notice from Canada’s Pharmaceutical Drugs Directorate regarding its semaglutide injection, a generic version of the blockbuster diabetes and weight-loss drug used in Novo Nordisk’s Wegovy and Ozempic. The stock fell as much as 5.6% to ₹1,180.9 on the NSE, becoming the top loser on the Nifty 50 and pharma indices, which slipped 0.26% and 1.1%, respectively.
The notice seeks additional data and clarifications related to Dr. Reddy’s regulatory submission, potentially delaying the product’s launch in Canada. U.S.-listed shares of the company also fell 8% overnight, reflecting investor concern over the regulatory setback in a key market.
Analysts at JP Morgan said the issue could push back the planned first-to-market launch from January 2026, threatening Dr. Reddy’s first-mover advantage and putting at risk the company’s forecasted Canadian semaglutide revenues of $30 million for FY26 and $100 million for FY27. Meanwhile, Emkay Global expects at least a six-month delay in the launch timeline.
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