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Dr Reddy's Shares Today: Shares of Dr Reddy’s Laboratories extended losses for the second straight session, slipping nearly 6 per cent in Thursday’s intra-day trade to hit a five-month low of Rs 1,181.60 on the BSE. The fall followed the company’s disclosure that it had received a Notice of Non-Compliance (NON) from the Pharmaceutical Drugs Directorate of Canada regarding its Abbreviated New Drug Submission (ANDS) for Semaglutide Injection.

In the past two trading sessions, the stock has fell 8.4 per cent, marking its weakest level since May 2025. Earlier this year, the stock had touched a 52-week low of Rs 1,025.90 on April 7, 2025.

According to the company’s filing, the NON requests additional data and clarifications related to specific aspects of Dr Reddy’s ANDS for Semaglutide. The company said it will respond within the stipulated timeline, adding that it remains confident about the quality, safety and comparability of its proposed formulation.

“We remain committed to making this important therapy available to patients in Canada and other markets at the earliest,” the Hyderabad-based company said.

The notice could potentially delay the company’s entry into the Canadian generic Semaglutide market, a key growth driver in its North America portfolio.

ICICI Securities noted that while the NON could postpone approval, the setback is procedural rather than terminal, and Dr Reddy’s remains on track to capitalise on the opportunity once clearance is received.

Morgan Stanley, which maintained an ‘Equalweight’ rating with a target price of Rs 1,389, warned that any delay in approval could impact FY27 earnings, as Canada’s generic Semaglutide opportunity is projected to contribute $198 million, or about 5 per cent of total FY27 revenues. The brokerage flagged rising competition in the Canadian market as an additional risk.

Jefferies retained an ‘Underperform’ rating with a target of Rs 1,130, highlighting that approval delays could push the product’s launch beyond January 2026, when the innovator’s exclusivity period ends. The firm expects flat growth in Dr Reddy’s North America base business without timely approval for this product.

Meanwhile, Bank of America (BofA) remains bullish, maintaining a ‘Buy’ rating with a target of Rs 1,600. It believes the opportunity is “delayed but not derailed,” estimating around $160 million in FY27 revenue from Canada—roughly 15 per cent of FY27 EBITDA. BofA added that Dr Reddy’s filings across 87 countries and its plan to sell 12 million pens in FY27 could offset any potential delay in Canada.

Market expert Anil Singhvi has issued a Sell call on Dr Reddy’s Futures, recommending a stop loss at Rs 1,290 and setting targets at Rs 1,225, Rs 1,200, Rs 1,180, and Rs 1,165. According to Singhvi, the recent Notice of Non-Compliance adds uncertainty to the stock’s near-term outlook.

“Till regulatory clarity emerges, the stock may continue to face pressure. Traders can look for short opportunities,” he said.

At 11:50 pm, shares of Dr Reddy’s were trading 4.40 per cent lower at Rs 1,195.80, with volumes nearly double the two-week average.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff