24 Apr , 2026 By : Debdeep Gupta
Shares of Dr Reddy's Laboratories slipped in Friday's trade after brokerages turned cautious on the stock following recent gains linked to hopes around semaglutide approval in Canada.
As per latest NSE data, Dr Reddy's Laboratories Limited shares were trading at Rs 1,316, down Rs 15 or 1.13%.
Citi maintained a 'Sell' rating on Dr Reddy's with a target price of Rs 1,070 per share. The brokerage said the company's recent 9% rally on unconfirmed generic semaglutide approval news in Canada likely overstated the upside.
Citi maintained its FY28 revenue estimate of $50 million in a six-player market, while estimating FY27 revenue of $80-100 million in a three-player market with a 65% generic discount. It added that upside to $150-180 million appears unlikely due to competition and possible price cuts. Citi also warned that the ex-Revlimid impact in Q4FY26 could lead to earnings estimate cuts.
Similarly, Goldman Sachs downgraded Dr Reddy's to 'Sell' from Neutral and set a target price of Rs 1,075 per share. The brokerage said that even if approval comes through, the Ozempic opportunity in Canada may be short-lived because of faster competition. Goldman Sachs added that the company's near-term pipeline remains limited to Ozempic and the Abatacept biosimilar, while ongoing price erosion in base products remains a concern. It also cut FY26-28 EPS estimates by 8-26% on slower growth and the Ozempic impact.
Separately, in a stock exchange filing, the company addressed CNBC-TV18's report titled, "Dr Reddy's Laboratories still awaiting approval for a major near-term trigger, sources say."
The company said, "In this connection, we wish to inform that the above captioned news item headline is correct, as the Company has not yet received approval ('Notice of Compliance') for its Semaglutide Injection from Health Canada."
"We further wish to inform that as part of the regulatory review process, the Company has received the 'Drug Identification Numbers (DINs)' for Semaglutide Injection from Health Canada on April 22, 2026. We continue to engage constructively with the regulatory authority and remain committed to bringing the product to the Canadian market upon approval," Dr Reddy's further said in the statement.
The company also said, "At this stage, there is no material event/ information that requires disclosure under Regulation 30 of the SEBI Listing Regulations."
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