Dr Reddy’s Slashes Semaglutide Forecast After Supply Chain Crisis

A manufacturing impurity in the active ingredient for semaglutide has forced Dr Reddy’s Laboratories to cut its annual sales target nearly in half, dropping from 12 million pens to a projected 6–7 million. The disruption underscores the fragility of the pharmaceutical giant's primary growth engine in an increasingly volatile global market.

Editorial·July 22, 2026·reads: 3,357

Dr Reddy’s Slashes Semaglutide Forecast After Supply Chain Crisis

The production halt comes as the company struggles with a significant profit downturn, reporting a 69% slide in consolidated net income to 4.44 billion rupees. CEO Erez Israeli confirmed that while regulatory filings remain on the agenda for Brazil, Turkey, and Mexico, the timeline for scaling production has slipped by several months.

External pressures are further clouding the company's outlook. New tariff proposals on generic imports from the United States have triggered an urgent internal review of the firm’s American investment strategy. Despite these international headwinds and supply chain failures, the company maintains a positive outlook for its domestic performance, where revenue continues to show resilient growth.