Dr Reddy (REDY.BO): Apotex’s Approval of Generic Wegovy Reshapes Canadian GLP-1 Landscape, Limiting DRL’s Upside

研报英文原文证据摘录

Dr Reddy (REDY.BO): Apotex’s Approval of Generic Wegovy Reshapes Canadian GLP-1 Landscape, Limiting DRL’s Upside

Flash |

01 Jul 2026 01:37:38 ET │ 10 pages

Dr Reddy (REDY.BO)

Apotex’s Approval of Generic Wegovy Reshapes Canadian GLP-1

Landscape, Limiting DRL’s Upside

CITI’S TAKE Sell

Apotex’s approval for a generic version of Wegovy in Canada (Sevmia) Price (30 Jun 26 15:30) Rs1,356.85

(Govt of Canada, 29 June 2026) intensifies competition in the generic Target price Rs1,070.00

GLP-1 segment (weight loss category) and is likely to confine DRL’s

Expected share price return -21.1% opportunity primarily to the diabetes market, as the company currently

lacks a filing in the weight-loss category. The market had previously Expected dividend yield 0.7%

anticipated substantial off-label use of Ozempic generics for weight loss; Expected total return -20.4%

however, with an interchangeable alternative now available, this potential Market Cap Rs1,129,863M

is diminished, in our view. Besides that, the ongoing supply side US$11,978M

constraints with its manufacturing partner may also compound the

challenges. We maintain our US$50-60 million estimate for DRL’s

Semaglutide opportunity in Canada. In our view, current market

expectations are factoring in an overly optimistic margin expansion Vivek Agrawal, CFAAC

(20.6% EBITDA margin in FY27E vs c15% in 4QFY26 ), partly driven by +91-22-6175-9875

strong Semaglutide ramp, a scenario that appears increasingly unlikely. vivek1.agrawal@citi.com

Our FY27/28E EPS remain 18%/23% below consensus. Sell.

Supply constraints and new entrants may erode upside – Despite securing

regulatory approval, DRL’s ability to scale its Semaglutide product in Canada is

hampered by supply-side issues with its manufacturing partner. Furthermore, with