The Dr Reddy’s share price plunged 5.6% to an intra-day low of Rs 1,180.90 on the National Stock Exchange as soon as markets opened on Thursday, October 30. The fall in the stock price came after the company received a Notice of Non-Compliance (NON) from the Pharmaceutical Drugs Directorate, Canada, regarding its Abbreviated New Drug Submission (ANDS) for Semaglutide Injection.
“The NON outlines requests for additional information & clarifications on specific aspects of the submission. We will submit a response at the earliest and well within the stipulated time period. We remain confident in the quality, safety and comparability of our proposed product and remain committed to making this important therapy available to patients in Canada and other markets at the earliest,” said Dr Reddy’s Laboratories in an exchange filing.
Nomura on Dr Reddy’s: Scope of near-term upside limited?
There is a low probability of the company receiving approval before the patent expiry in early January 2026. “The company is likely to seek an expedited review. We think the approval is now likely in March – June 2026. An approval now could have led to significant near-term upside in earnings, as Dr Reddy’s may have been the only company to gain market access on patent expiry,” said the brokerage. This is highly unlikely currently.
Following the announcement, the brokerage firm slashed the target price to Rs 1,580 from Rs 1,650. However, the brokerage retained its ‘Buy’ rating on the stock. Nonetheless, Dr Reddy’s valuation appears attractive as it has underperformed peers over the past five years.
Dr Reddy’s Laboratories stock performance
The share price of Dr Reddy’s Lab has declined 7% in the last five trading sessions. The stock has fallen 2.5% in the past one month. However, the stock has surged 0.8% in the previous six months. Dr Reddy’s Lab’s stock price has corrected almost 5% in the past one year.
