What caused Dr Reddy's to halt commercial supplies of semaglutide injections, and what was the immediate financial impact?

Dr Reddy's halted commercial supplies of semaglutide injections after detecting an 'unspecified impurity' during the scale-up of active pharmaceutical ingredient production. This led to a $678 million wipeout in market value on Thursday, and the stock slid as much as 3.7% on Friday, making it the top loser on the pharma index (.NIPHARM).

How have analysts responded to Dr Reddy's semaglutide supply disruption, and what specific revisions did they make to earnings and revenue forecasts?

Analysts cut earnings estimates and downgraded the stock due to concerns over eroded first-mover advantage and competitive risk. Emkay Global reduced its fiscal 2027 earnings estimates by about 7%, while Systematix downgraded the stock to 'hold' from 'buy', cut its fiscal 2028 semaglutide revenue estimate from $150 million to $100 million, and lowered its target price from 1,475 rupees to 1,398 rupees.

India's Dr Reddy's Extends Slide as Semaglutide Setback Threatens First-Mover Edge

Jul 9, 2026

Dr Reddy's shares fell after halting semaglutide injections due to an API impurity. Analysts downgraded earnings forecasts, warning the supply disruption could erode the company's market advantage.

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