Dr Reddy’s Laboratories Delays Semaglutide Launch To November After Production Issue

Dr Reddy’s Laboratories share price came under pressure after the company said it would postpone the commercial launch of semaglutide to November. The drugmaker also lowered its supply target for FY27 after identifying a quality issue during production, although it said its overall financial guidance for the year remains unchanged.

At 3:12 PM, on 10 July 2026, the company’s share price had declined over 1.80% to reach ₹1,246.60 on the National Stock Exchange.

Why Has Dr Reddy's Laboratories Delayed The Launch?

During its earnings conference call, the company said it detected an impurity while scaling up the production of the active pharmaceutical ingredient (API) used in Dr Reddy's semaglutide. The issue was identified in pre-validation batches, prompting the company to push back commercial supplies until the validation process is completed.

Dr Reddy's Laboratories clarified that the affected batches had not entered the market and there is no risk of a product recall.

How Much Has The Supply Target Been Reduced?

The company now expects to supply 6-7 million semaglutide pens during FY27, nearly half of its earlier estimate of around 12 million pens. The lower guidance reflects the delayed start to commercial supplies rather than weaker demand for the product.

Dr Reddy's Laboratories also said it may have to write down inventory linked to the affected batches.

Will The Delay Affect Its Financial Outlook?

Despite the setback, the company has retained its broader guidance for FY27. Management said it still expects to deliver an EBITDA margin of around 20% and that the production issue does not change its overall business outlook.

It also confirmed that existing inventory in Canada remains unaffected. The delay will only impact fresh supplies during the revised launch period, with no disruption to products already available in the market.

Dr Reddy's Laboratories added that it will continue working with its existing sourcing partner while expanding its own manufacturing capacity for semaglutide and other products to support long-term growth.

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