Dr. Reddy's Stock Declines Close to 4% After Canada Flags Non-Compliance on Semaglutide Submission

Hyderabad, October 30, 2025: Dr. Reddy’s Laboratories Ltd share price (NSE: DRREDDY) fell almost 4% in the morning trade on Thursday after the firm announced that it received a Notice of Non-Compliance (NON) from Health Canada’s Pharmaceutical Drugs Directorate. The regulatory setback relates to the firm’s Abbreviated New Drug Submission (ANDS) for Semaglutide injection the generic version of a widely used diabetes and obesity medication.

Details of the Regulatory Notice

In a formal statement, Dr. Reddy’s acknowledged that Health Canada had issued the NON on its Semaglutide injection dossier. The company stated it continues to believe in the quality, safety, and comparability of its product and would continue interacting with the regulator to clarify the observations. Dr. Reddy’s further stated that it is determined to make Semaglutide available to Canadian and other markets’ patients “at the earliest,” subject to requisite approvals.

Semaglutide, a molecule developed by Novo Nordisk, is a major molecule employed to treat Type 2 diabetes and weight management. It has been increasingly in demand across the world, and hence it is a major pipeline opportunity for generic players like Dr. Reddy’s.

Stock and Market Context

The regulatory development triggered a sell-off in the counter, pushing the shares towards the lower end of their 52-week range of ₹1,020 to ₹1,405.90. As of 12:36 pm IST, the stock was down 3.93% at ₹1,201.70, compared to the previous close of ₹1,250.90. The decline dragged the company’s market capitalisation to ₹99,460.92 crore, with over 25 lakh shares changing hands on the NSE.

REF: https://nsearchives.nseindia.com/corporate/DRREDDY_29102025174929_DRL_SE_Intimation_29102025_signed.pdf

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