“We wish to inform that the above captioned news item headline is correct, as the company has not yet received approval for its Semaglutide injection from Health Canada,” Dr. Reddy’s said in the exchange filing. The story was first reported by CNBC-TV18 on Thursday, that the approval is still awaited.
However, the filing also highlighted that the company has received the Drug Identification Numbers (DINs) for Semaglutide injection from Health Canada on Thursday.
“We continue to engage constructively with the regulatory authority and remain committed to bringing the product to the Canadian market upon approval,” the filing added.
A Drug Identification Number (DIN) is a computer-generated eight-digit number assigned by Health Canada to prescription and over-the-counter drug products authorized for sale in Canada. It ensures that the product has passed a review of its formulation, labeling and instructions for use, confirming that it is safe and effective.
Shares of Dr. Reddy’s Laboratories were up over 10% on Thursday, marking their biggest single-day gain in the last six years.
However, brokerage firm Goldman Sachs has downgraded the stock to “sell” from its earlier rating of “neutral” and also cut its price target on the stock to ₹1,075 from ₹1,225 earlier.
Goldman believes that Ozempic opportunity for early movers in Canada will be short-lived even if there is a timely approval, adding that the pipeline for DRL for larger value drugs also remains limited.
Ongoing price erosion in key products remains a lingering concern for Dr. Reddy’s and therefore, Goldman Sachs has cut its financial year 2026-2028 Earnings Per Share estimates sharply by 8% to 26%.
Citi also maintained its “sell” recommendation on Dr. Reddy’s with a price target of ₹1,070. It said that Thursday’s move on the stock overstates any potential upside, as it maintains its financial year 2028 estimated product revenue expectation of $50 million in a six-player market.
The brokerage also added that while revenue in the current financial year could reach between $80 million to $100 million in a three-player market, with a mandatory generic discount of 65%, a significant upside towards $150 million to $180 appears “improbable” as that will need absence of competition and no price cuts from innovators.
“With Q4 FY26 numbers expected to reflect ex-Revlimid contribution, expect downward revision in street earnings estimates,” Citi wrote.
41 analysts have coverage on Dr. Reddy’s Laboratories, where 18 have a “buy” rating, 10 say “hold” and 13 have a “sell” rating on the stock.
Shares of Dr. Reddy’s Laboratories are trading 1.3% lower after recovering from opening lows, at ₹1,313.9. The stock, after Thursday’s move, had turned positive on a year-to-date basis.
