Dr Reddy’s Laboratories’ share price will be in focus after Citi reiterated its Sell rating and trimmed its outlook on the stock following regulatory setbacks linked to its generic semaglutide ambitions. The brokerage slashed the target price to Rs 1,070, implying a 13 per cent downside from current market price.
The brokerage flagged concerns after Dr Reddy’s semaglutide product, Embeltah, was denied registration by Brazil’s health regulator ANVISA, a move that could keep the company out of the initial wave of generic launches in the key market. Citi also pointed to intensifying competition in Canada and potential pricing pressure from innovator Novo Nordisk, maintaining a cautious stance on the earnings upside from semaglutide despite rising global demand.
Earlier in a report Nuvama had noted that India’s domestic pharmaceutical market growth picked up pace in March 2026 after a prolonged slowdown driven by a favourable base, steady pricing gains, and traction from new launches, particularly in the anti‑diabetic segment, even as volumes remained modest and structural challenges from trade generics and private labels continued to loom over the sector.
Semaglutide is a an anti-diabetic medication used for the treatment of type 2 diabetes and an anti-obesity medication used for long-term weight management
Semaglutide is a glucagon-like peptide-1 (GLP-1) receptor agonist. It decreases blood sugar levels, stimulates insulin production and reduces food intake by lowering appetite and slowing down digestion in the stomach, helping reduce body weight. Studies show an average weight loss of 14.9 per cent to 17.4 per cent at 68 weeks with the 2.4 mg dose. A significant proportion of users (over 80 per cent) achieved 5 per cent weight loss can be administered by subcutaneous injection or taken orally
Novo Nordisk failed to pay a required patent maintenance fee, and their patent on the chemical structure of the drug expired in 2020. A generic drug is a lower-cost version of a brand-name medication that must have the same active ingredient, dosage, safety, strength, and efficacy as the original.
Starting in March 2026, generic alternatives for Novo Nordisk’s Semaglutide drugs entered in the following countries:
In India, Semaglutide Patent expired on March 21, 2026, making the treatment more affordable, and expand the market for these drugs by more than 10 times. in India
Semaglutide is a prescription medication primarily for adults with type 2 diabetes to manage blood sugar and for adults (and adolescents 12+) who are obese or overweight, or often accompanied by weight-related conditions like high blood pressure or heart disease.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
