Dr Reddy's Shares Face 28% Drop: Citi Advises 'Sell' Amid Semaglutide Competition Fears

• Global brokerage Citi reiterated its 'Sell' rating on Dr Reddy's Laboratories shares, lowering its target price to ₹990, anticipating a 27.6% fall.
• Citi's primary concern is intense competition in the semaglutide market, with Novo Nordisk's "dual-brand strategy" expected to challenge generics.
• Novo Nordisk plans to launch lower-priced branded versions (Poviztra, Plosbrio) in Canada by December 2025, directly competing with future generic drugs.
• Dr Reddy's received a "Complete Response Letter" from the US drug regulator for its generic semaglutide filing in November 2025, impacting project timeline and earnings potential.
• Citi significantly lowered its sales estimate for Dr Reddy's semaglutide business to $500 million for FY27-28, well below market expectations.

Why It Matters: Citi's 'Sell' call on Dr Reddy's stems from fierce semaglutide competition and regulatory hurdles.