Dr Reddy’s plunges 6%, hits 5-month low; why pharma stock under pressure? | Markets News

Share price of Dr Reddy’s Laboratories today

 

Shares of Dr Reddy’s Laboratories hit a five-month low of ₹1,181.60, plunging 6 per cent on the BSE in Thursday’s intra-day trade after the company received a Notice of Non-Compliance (NON) from Pharmaceutical Drugs Directorate, Canada, regarding its Abbreviated New Drug Submission (ANDS) for Semaglutide Injection.

 

In the past two trading days, the stock price of the pharmaceutical company has slipped 8.4 per cent. It now quotes at its lowest level since May 2025. The stock had hit a 52-week low of ₹1,025.90 on April 7, 2025. 

 

Why pharmaceutical stock under pressure today?

 

Dr Reddy’s has informed the stock exchanges that it has received a NON from the Pharmaceutical Drugs Directorate, Canada, regarding its ANDS for Semaglutide Injection. The NON outlines requests for additional information and clarifications on specific aspects of the submission. 

 
 

“We will submit a response at the earliest and well within the stipulated time period. We remain confident in the quality, safety and comparability of our proposed product and remain committed to making this important therapy available to patients in Canada and other markets at the earliest,” said the company in an exchange filing.

 

Brokerages view on Dr Reddy’s Labs

 

Dr Reddy’s has stated that it will address the regulatory observations within the stipulated timeframe. The development may delay the company’s planned entry into the Canadian market with Semaglutide. Nevertheless, the company remains focused on making the therapy available in Canada and other markets as soon as possible, ICICI Securities said in a note.

 

The additional information/clarification requirement by the Canadian health regulator from Dr Reddy’s prolongs the prospects of Ozempic’s generic version (Semaglutide injection). Considering the time required to submits required information, time taken by the regulator to review the application, and the year end period, this delay has weakened the scope of Semaglutide injection business from the Canadian market in March 2026 quarter (Q4FY26), Motilal Oswal Financial Services said.

 

Considering market potential and Dr Reddy’s being an early filer, the brokerage firm has estimated revenue of $75-80 million/ $ 350 million from this product in Q4FY26/FY27 in different markets (2 per cent/8 per cent of FY26E/FY27E revenue), the brokerage firm said, adding they await clarity about the approval process for potential markets, including Canada.