Shares of Dr Reddy’s Laboratories and Shaily Engineering Plastics fell 5% and 13%, respectively, on 30 October after the drug company announced a delay in approval for its Semaglutide injectable in the Canadian market.

In a regulatory statement on Wednesday, Dr Reddy’s Laboratories stated that the company had received a Notice of Non-Compliance (NON) from Canada’s Pharmaceutical Drugs Directorate about its Semaglutide injection application, which requested additional information and clarifications. 

The business stated that it will respond within the specified time frame and maintain confidence in the product’s quality, safety, and comparability.

Semaglutide is a popular diabetes and weight-loss medication, and is the generic form of Ozempic created by Novo Nordisk.

The update weighed on Shaily Engineering Plastics’ stock, which makes medicine delivery systems for Dr Reddy’s, including Semaglutide pens.  According to Shaily’s FY25 annual report, Dr Reddy’s is one of its top pharmaceutical clients.

During the first quarter of FY26, Shaily’s management stated that the healthcare segment’s contribution to total sales doubled to 31%, owing to increased demand for Semaglutide pens. To fulfil this demand, the business added 19 new injection moulding machines as well as a specialised assembly and printing line, increasing annual capacity by 25 million pens.

The company has announced intentions to add another 25 million pen line for a new Semaglutide version, with a total investment of Rs 125 crore in FY26.

“We have 60% of generic market share on semaglutide across the markets that are opening up,” managing director Amit Sanghvi had said during the company’s Q1FY26 earnings call.

The delay in Dr Reddy’s permission has generated concerns about potential short-term demand weakness for Shaily’s major product line.

According to Shailys’ FY25 annual study, the global Semaglutide market, valued at $28.4 billion in 2024, is expected to reach $93.6 billion by 2035, growing at a CAGR of 10.5% due to rising diabetes and obesity incidence.

At 1:23 pm, the shares of Dr Reddy’s Lab were trading 3.93% lower at Rs 1,201.70, while Shaily Engineering shares were trading 9.79% lower at Rs 2,304.10 on NSE.

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