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Explained — Why Dr. Reddy's Laboratories shares are down in a strong marketCiti said the rejection prevents Dr. Reddy's Laboratories from participating in the initial wave of semaglutide in Brazil. Dr. Reddy's has missed the early opportunity in a competitive market with 16 pending applications in Brazil, Citi's note said.By Ekta Batra  April 15, 2026, 9:52:03 AM IST (Published)2 Min ReadShares of Dr Reddy's Laboratories Ltd. declined nearly 3% on Wednesday, April 15, after the recent developments on its weight-loss drug applications in Brazil and Canada and brokerage firm Citi's subsequent negative outlook on the stock.

Brazil's regulator has denied the registration of semaglutide as the filing did not meet all technical requirements. The Brazil market has around 16 applications for semaglutide.

Apotex has gotten a tentative nod from the US Food and Drug Administration (USFDA) for semaglutide. Meanwhile, Dr Reddy's is awaiting the final approval for semaglutide in Canada.

Meanwhile, brokerage firm Citi has a 'sell' rating on the stock with a price target of ₹1,070 per share.

The brokerage said the rejection prevents the company from participating in the initial wave of semaglutide in Brazil. Dr. Reddy's has missed the early opportunity in a competitive market with 16 pending applications in Brazil, Citi's note said.

Apotex's tentative nod in the US suggest that it may gain a lead over Dr Reddy's in Canada, the brokerage added.

Shares of Dr. Reddy's Laboratories are looking to recover from the lows of the day, currently trading 1.8% lower at ₹1,213. The stock is down 5% in the last one month and as a result, has turned negative for the year.

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