Dr. Reddy’s Laboratories still awaiting approval for a major near-term trigger, sources say

Dr. Reddy’s Laboratories is still awaiting approval for Semaglutide in Canara, sources with knowledge of the matter told CNBC-TV18.Shares of Dr. Reddy’s Laboratories gained as much as 8% on Thursday in anticipation of this approval, marking the biggest single-day gain for the stock since May 2022.

After its third quarter results, the management of Dr. Reddy’s Laboratories had said that they expect to hear on the Semaglutide approval in Canada by May 2026 and that they are preparing for launch readiness either in the fourth quarter of the financial year 2026 or in the first quarter of financial year 2027.
Analysts who track Dr. Reddy’s expect six to nine months of no competition in the Canadian market and that the street is working with revenue between $80 million to $100 million in Canada for financial year 2027.The entire Semaglutide market in Canada is worth $1.5 billion.

Dr. Reddy’s Laboratories is yet to respond to CNBC-TV18’s query on this approval.

Two more players are likely in the market within the first year of launch, with Sandoz and Apotex also ready with their products in the pipeline.

Shares of Dr. Reddy’s Laboratories are holding on to gains of 6.9% at ₹1,300.9. The stock is nearing its 52-week high of ₹1,379.7. The stock has also snapped a three-week losing streak in today’s session.