Dr Reddy's shares tumble 7% as quality issue delays commercial launch of semaglutide- all you need to know

Shares of Dr Reddy's Laboratories declined nearly 7% in Thursday's trade (July 9) on the NSE after the drugmaker said commercial supplies of its semaglutide product would be delayed due to an active pharmaceutical ingredient (API)-related quality issue.

The company said certain batches of semaglutide were found to be out of specification and that it is investigating the root cause, while maintaining that there is no impact on patient safety or the product's existing global regulatory filings.

The company's filing read, "Certain batches of semaglutide were found to be out of specification due to an issue associated with the active pharmaceutical ingredient (API) used in the product. We are investigating the root cause and taking appropriate measures to ensure product quality. Until the issue is resolved, commercial supplies of the product will be delayed for a certain period of time."

What is semaglutide?

Semaglutide is a medicine used to treat type 2 diabetes and obesity. It belongs to a class of drugs called GLP-1 receptor agonists, which mimic a natural hormone in the body to help regulate blood sugar levels, slow how quickly food leaves the stomach, and reduce appetite.

These effects help improve blood glucose control and support weight loss.

Semaglutide is sold globally under brands such as Ozempic for type 2 diabetes and Wegovy for weight management. It has emerged as one of the fastest-growing therapies in the pharmaceutical industry due to strong demand.

Indian firms enter the space

Indian pharmaceutical companies are increasingly entering the semaglutide market as the drug's patent protection expires in several countries, opening the door for generic and biosimilar versions.

Companies such as Dr Reddy's Laboratories, Sun Pharmaceutical Industries, Cipla, Lupin, Biocon, and Zydus Lifesciences are among those developing semaglutide products to tap into the rapidly growing market for diabetes and obesity treatments.

With demand for GLP-1 drugs surging worldwide, the segment is seen as a significant long-term growth opportunity for Indian drugmakers, particularly in regulated markets such as the US and Europe.

Dr Reddy''s Obeda: Oral semaglutide in India

In May 2026, Dr Reddy's Laboratories announced the launch of its oral semaglutide biosimilar, indicated for Type 2 diabetes mellitus, in India under the Obeda brand.

This launch followed Dr Reddy's recent generic semaglutide injection launches in India and Canada, the company said in a statement.

DRL's prescription-based drug Obeda (semaglutide tablets) is available in 3 mg, 7 mg and 14 mg strengths and recommended for once-daily oral use.

It is priced at ₹99, ₹135, and ₹225 per tablet for the 3 mg, 7 mg, and 14 mg doses, respectively, it added.

Oral semaglutide, a glucagon-Like Peptide-1 receptor agonist (GLP-1 RA), is indicated as an adjunct to diet and exercise to improve glycaemic control in adults with type 2 diabetes.

"We recognise that every patient's journey with diabetes is different, and treatment choices must reflect that diversity. With this launch, we are broadening our GLP1 portfolio to offer patients more choice and flexibility," Dr Reddy's CEO, Global Generics, MV Ramana said.

The CEO further said, "As the product is developed and formulated in-house, we are committed to reliable supply and consistent quality for patients in India."

As the company continues to build a comprehensive GLP-1 portfolio, Ramana said, "We are focused on delivering innovation, high-quality, and affordability, translating into meaningful treatment options and better long-term outcomes for people living with chronic metabolic diseases in India and beyond."