Dr. Reddy's Delays Generic Ozempic Launch Due to Ingredient Quality Issue

Jul 9, 2026

Dr. Reddy's Laboratories is delaying its generic Ozempic drug, semaglutide, after finding an issue with its active pharmaceutical ingredient that left some batches "out of specification." The news sent the Indian drugmaker's shares down as much as 6.5%, their worst drop since May 2023. The company stated there is no risk to patient safety as it investigates the root cause of the quality issue.

Dr. Reddy's supply delay

▪The company launched its semaglutide brand, Obeda, earlier in 2026.
▪The duration of the supply disruption was not specified by Dr. Reddy's.
▪Dr. Reddy's Laboratories is delaying commercial supplies of its generic semaglutide drug.

Stock market impact

▪Shares of Dr. Reddy's Laboratories fell by as much as 6.5% on July 9, 2026.
▪The stock drop was on track to be the company's steepest loss since May 2023.

Indian generic semaglutide market

▪Semaglutide is the active ingredient in Novo Nordisk's diabetes and obesity drugs, Ozempic and Wegovy.
▪More than half a dozen Indian drugmakers, including Zydus Lifesciences and Sun Pharma, have launched generic semaglutide brands.
▪India has the world's second-largest diabetic population.
▪Generic versions in India are priced up to 70% lower than Novo Nordisk's Ozempic.

Quality control issue

▪Certain batches of the semaglutide product were found to be "out of specification."
▪Dr. Reddy's is investigating the root cause of the quality issue and taking measures to ensure product quality.
▪Dr. Reddy's stated the issue has no impact on patient safety or existing global regulatory filings.
▪The delay was caused by an issue with the active pharmaceutical ingredient (API) used in the drug.