Dr Reddy's to restart semaglutide supplies in November, with Canada leading demand

what happened

India's Dr Reddy's Laboratories expects to resume semaglutide supplies in key international markets from November, according to TradingView. Manufacturing issues with the active pharmaceutical ingredient, which slowed the product's rollout earlier this year, have been resolved, management said, and batches are being prepared for the relaunch.

CEO Erez Israeli said the company expects to supply 6 to 7 million units across 10 markets in the third and fourth quarters, with Canada accounting for most of the volume. The company said no new regulatory approval is needed in Canada. In the June quarter, Dr Reddy's booked a provision of Rs 240 crore for inventory and other costs linked to the issue. CFO M.V. Narasimham said such P&L hits are not expected going forward.

In India, the company said it kept its market presence through an alternative supply arrangement. It also received approval in Chile, where it is the first generic entrant, and expects more emerging markets to open up over the coming years.

why it matters

For Dr Reddy's investors, the return to Canada, a large market, could partly offset the sales pause. Management ties the recovery to demand that built up during the withdrawal, while Europe and the US are described as longer-term opportunities.

market impact

Dr Reddy's shares: the semaglutide restart and no expected new one-off costs support revenue expectations.

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