Dr. Reddy’s Laboratories announced Thursday that it is putting commercial shipments of semaglutide on hold, citing a problem with the active pharmaceutical ingredient in the medication. The news sent the company’s stock price lower.
Semaglutide is the core ingredient found in Novo Nordisk’s widely used diabetes and obesity treatments. Dr. Reddy’s had also introduced its own semaglutide injection product, called Obeda, in India for the treatment of diabetes.
The India-based drug manufacturer disclosed that certain production batches of semaglutide were found not to meet required quality specifications. The company said it is currently investigating what caused the problem and is taking steps to make sure its products meet quality standards.
In an official statement, Dr. Reddy’s said, “There is no impact on patient safety or on the product’s existing global regulatory filings.”
The company did not provide a timeline for when the supply disruption would be resolved and offered no additional details on the matter.
Dr. Reddy’s shares fell 1.8% to 1,324 rupees as of 10:20 a.m. IST, even as the broader pharmaceutical index rose 1.8% and the Nifty 50 index climbed 0.6%.
More than half a dozen Indian pharmaceutical companies have introduced lower-priced versions of Novo Nordisk’s Ozempic and Wegovy drugs, all competing for a portion of the rapidly expanding global market for obesity treatments.
However, demand for these medications leveled off in June, according to data from research firm Pharmarack.
