Dr Reddy?s Lab drops after quality issue delays semaglutide supplies

Dr Reddy's Laboratories tumbled 6.29% to Rs 1,263.90 after the company said commercial supplies of certain batches of its semaglutide product will be delayed following a quality-related issue involving the active pharmaceutical ingredient (API).

Semaglutide is widely used for the treatment of type 2 diabetes and obesity.

The company said certain batches of semaglutide were found to be out of specification due to an issue associated with the API used in the product. It is currently investigating the root cause and taking appropriate corrective measures to ensure product quality.

Dr Reddy's clarified that the issue has no impact on patient safety or the product's existing global regulatory filings. The company added that it remains committed to ensuring reliable global supplies of the metabolic therapy.

The company's management will host a conference call on 9 July 2026 at 4:30 p.m. IST to discuss the development and answer questions from participants.

Hyderabad-based Dr Reddy?s Laboratories is a global pharmaceutical company. It offers a portfolio of products and services including APIs, generics, branded generics, biosimilars and OTC.

The company reported a 86.14% decline in consolidated net profit to Rs 220.9 crore on 11.51% drop in revenue from operations to Rs 7,546.4 crore in Q4 FY26 over Q4 FY25.

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