Dr Reddy's Laboratories announced on Thursday the suspension of commercial supplies of semaglutide. The reason cited was the discovery of issues related to the active pharmaceutical ingredient used in this drug, which led to a decline in its stock price.
Reason for Supply Delay
The Indian manufacturer reported that some batches of semaglutide did not meet established specifications. The company is currently investigating the root cause and taking necessary measures to ensure product quality.
Company Stance and Market
In an official statement, Dr Reddy's emphasized that this situation does not affect patient safety or the existing global registration dossiers of the product. The company did not specify the duration of the supply problems nor disclose further details.
Semaglutide is the main component of Novo Nordisk's bestsellers for treating obesity and diabetes. Dr Reddy's has also launched its injectable form of semaglutide, named Obeda, in the Indian market for diabetes management.
More than half a dozen Indian manufacturers have released cheaper analogues of Novo Nordisk's Ozempic and Wegovy, competing for market share in the rapidly growing global obesity treatment market. According to research firm Pharmarack, demand for these drugs stabilized in June.