Dr Reddy's Warns of Potential Worsening Semaglutide Supply Issue

India-based pharmaceutical company Dr Reddy's Laboratories has warned of a potentially broader impact on the supply of semaglutide-based products, following weaker-than-expected profit figures. The company stated that the global supply bottleneck for this active ingredient, used primarily in diabetes and obesity treatments, could become more pronounced in the coming period. According to Dr Reddy's statement, disruptions in the semaglutide supply chain are negatively affecting the company's production and distribution plans. This is causing delays in fulfilling existing orders and limiting the capacity to respond to new customer demand. Company officials noted that the supply issue is unlikely to be resolved in the short term and could therefore have a market-wide impact. Looking at the financial results, Dr Reddy's posted a lower-than-expected quarterly profit. The company attributed this decline to semaglutide supply problems, as well as increased competition and cost pressures. In particular, falling generic drug prices in the US market were cited as a factor negatively impacting profitability. Dr Reddy's added that if the uncertainty surrounding semaglutide supply persists, it may have to revise its growth targets for the fiscal year 2025. The company is continuing efforts to develop alternative supply sources and increase production capacity. However, it is not possible to make a clear forecast as to when global supply constraints will normalize. This is not investment advice.