Shares of Dr Reddy's Laboratories plunged by 6% in Thursday's trade, after the pharma major notified that it has received a notice of non-compliance from Pharmaceutical Drugs Directorate, Canada. The non-compliance notice was regarding their abbreviated new drug submission (ANDS) for semaglutide injection. The shares hit an intraday low of ₹1,180.90. 

The company, in its statement said that they will submit a response at the earliest and well within the stipulated time period. "We remain confident in the quality, safety and comparability of our proposed product and remain

committed to making this important therapy available to patients in Canada and other markets at the earliest." 

Dr Reddy's Laboratories holding 9.8% weightage in Nifty Pharma has dragged the index, which was down by 0.69%. Other laggards were Zydus Lifesciences, PPL Pharmaceuticals, Sun Pharmaceutical, and Lupin, all declining in the range of 1% and 1.60%. 

Dr Reddy's Laboratories announced their Q2 results on October 24, with a 7% in net profit on a YoY basis, to ₹1347.1 crore. Its revenue from operations rose by 10% YoY to ₹8,828 crore in Q2FY2026, as compared to ₹8,038 crore for the corresponding quarter of the previous financial year.

As per a Motilal Oswal Financial Services report, the timing of additional queries is in fact quite notable. The pharma major was positioned as the first generic filer and had been preparing for a January 2026 launch. As per management, the annualized revenue expectation is $300 million in the initial phase from Canada’s Semaglutide market. "The notice delays the company’s scope to capture the early-market opportunity. Dr Reddy's Labs would be working on providing the required information to address the issue at the earliest," noted the report. 

At the time of reporting, the shares were down by 3.86%,at Rs 1203. The stock had hit a 52-week high in January 2025 at Rs 1409.50, and a 52-week low of Rs 1020 in April this year. The stock has fallen by 1.69% over a month, but is still up by 1.70% over 6 months.

The shares of the pharmaceutical major has declined by 12.05% on a year-to-date basis.