Shares of Dr. Reddy’s Laboratories Limited fell on Thursday, 9 July, hitting a day’s low of Rs 1,312.10 on the NSE after a manufacturing snag.

The Hyderabad-based drugmaker flagged the issue in an exchange filing, saying certain batches of its diabetes and weight-loss drug Semaglutide did not meet specification.

The company traced the problem back to the Active Pharmaceutical Ingredient, the core raw material used in making the medicine.

‘We are investigating the root cause and taking appropriate measures to ensure product quality,’ the filing said.

As a result, commercial supplies of Semaglutide will be delayed while the investigation is carried out. Dr. Reddy’s was clear that patient safety has not been affected.

The company also said the issue has no bearing on the product’s existing global regulatory approvals in other markets.

There’s some added weight to this news given the timing. Dr. Reddy’s had only just entered the Canadian market with its semaglutide product in May this year.

The launch had been flagged by the company as a meaningful opportunity for its specialty portfolio, making any delay in supply chain reliability a point worth watching closely for investors tracking that segment.

No related-party transaction has been disclosed in connection with this filing.

On the price action, the stock opened at Rs 1,340.00 against a previous close of Rs 1,349.00 before sliding to the day’s low of Rs 1,312.10.

Shares recovered some ground through the morning session. At 10:00 am, the stock was trading at Rs 1,331.70 on the NSE, down 1.28% for the day.

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