Sign in Subscribe
Generic drugs

Dr Reddy's Laboratories Clears Path to Launch Generic Semaglutide in India

Strategic Insights

— 2 min read

Dr Reddy's Laboratories has received clearance from a subject expert committee to manufacture and market generic versions of semaglutide, a weight loss and obesity drug, in India. The company plans to launch the product as soon as the Danish drug maker Novo Nordisk's patent expires early next year. This move is part of the company's strategy to tap into the growing demand for affordable treatments for chronic conditions such as diabetes and obesity. Dr Reddy's Laboratories has already reported a 9.8% rise in consolidated revenues year-on-year to Rs 8,805 crore, driven by momentum in branded markets and steady contributions from the Nicotine Replacement Therapy (NRT) portfolio.

Key Takeaways:

  • Dr Reddy's Laboratories has received clearance from the Subject Expert Committee (SEC) under the Central Drugs Standard Control Organization (CDSCO) to manufacture and market generic semaglutide in India.
  • The company plans to launch the product as soon as the Danish drug maker Novo Nordisk's patent expires early next year.
  • The semaglutide patent in India is set to expire in March 2026.
  • Dr Reddy's Laboratories has ruled out any marketing partnership with Eli Lilly for its weight loss molecule tirzepatide.
  • The company's branded markets division reported a 9.8% rise in consolidated revenues year-on-year to Rs 8,805 crore, driven by momentum in branded markets and steady contributions from the NRT portfolio.
  • The company is betting big on generic semaglutide, with plans to launch in 87 countries in 2026 as a future growth driver.
  • Dr Reddy's Laboratories expects the market for semaglutide to grow significantly after the patent expiry, driven by unmet need for diabetes and obesity treatments.

Statistics:

  • Consolidated revenues for Dr Reddy's Laboratories rose 9.8% YoY to Rs 8,805 crore in the second quarter.
  • Profit after tax increased 14% YoY to Rs 1,437 crore.
  • EBITDA margin was at 26.7% vs 28.4% in Q2 FY21.
  • Gross margins contracted by 492 basis points YoY to 54.7%.
  • Sales value of Lilly's Mounjaro (tirzepatide) surged to Rs 112 crore in six months of its launch, while Novo Nordisk's Wegovy (semaglutide) could post only Rs 28 crore in four months since its launch in June.

Sources:

  • Business Today, "Dr Reddy's Laboratories Clears Path to Launch Generic Semaglutide in India"
  • Business Standard, "Dr Reddy's Laboratories reports 9.8% rise in consolidated revenues"
  • Economic Times, "Dr Reddy's Laboratories bets big on generic semaglutide, plans to launch in 87 countries in 2026"

Read more