Shares of Dr Reddy’s Laboratories and Shaily Engineering Plastics fell 5% and 13%, respectively, on 30 October after the drug firm introduced a delay in approval for its Semaglutide injectable within the Canadian market.
In a regulatory assertion on Wednesday, Dr Reddy’s Laboratories acknowledged that the corporate had acquired a Discover of Non-Compliance (NON) from Canada’s Pharmaceutical Medicine Directorate about its Semaglutide injection utility, which requested extra data and clarifications.
The enterprise acknowledged that it’ll reply throughout the specified time-frame and keep confidence within the product’s high quality, security, and comparability.
Semaglutide is a well-liked diabetes and weight-loss treatment, and is the generic type of Ozempic created by Novo Nordisk.
The replace weighed on Shaily Engineering Plastics’ inventory, which makes drugs supply methods for Dr Reddy’s, together with Semaglutide pens. In response to Shaily’s FY25 annual report, Dr Reddy’s is one in all its high pharmaceutical shoppers.
In the course of the first quarter of FY26, Shaily’s administration acknowledged that the healthcare phase’s contribution to complete gross sales doubled to 31%, owing to elevated demand for Semaglutide pens. To fulfil this demand, the enterprise added 19 new injection moulding machines in addition to a specialised meeting and printing line, rising annual capability by 25 million pens.
The corporate has introduced intentions so as to add one other 25 million pen line for a brand new Semaglutide model, with a complete funding of Rs 125 crore in FY26.
“We have now 60% of generic market share on semaglutide throughout the markets which are opening up,” managing director Amit Sanghvi had stated through the firm’s Q1FY26 earnings name.
The delay in Dr Reddy’s permission has generated considerations about potential short-term demand weak point for Shaily’s main product line.
In response to Shailys’ FY25 annual examine, the worldwide Semaglutide market, valued at $28.4 billion in 2024, is predicted to achieve $93.6 billion by 2035, rising at a CAGR of 10.5% on account of rising diabetes and weight problems incidence.
At 1:23 pm, the shares of Dr Reddy’s Lab have been buying and selling 3.93% decrease at Rs 1,201.70, whereas Shaily Engineering shares have been buying and selling 9.79% decrease at Rs 2,304.10 on NSE.
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