Biggest bear on Dr. Reddy's sees 28% downside on likely Semaglutide challenges

Shares of Dr Reddy's Laboratories Ltd. declined on Thursday, January 8, as brokerage firm Citi reiterated its negative stance on the stock.

Citi maintained its "sell" rating on Dr Reddy's with a price target of ₹990 per share, a potential downside of 27.6% from Wednesday's close. This is the lowest price target on the street for the Hyderabad-based drugmaker.

The brokerage wrote in its note that Novo Nordisk is pursuing a dual-brand strategy to retain market share for semaglutide as generic competition looms in 2026.

In December 2025, Novo Nordisk secured Canadian approval for Poviztra and Plosbrio, which are equivalents of Wegovy and Ozempic. It is expected to launch lower-priced branded versions, directly competing with upcoming generics.

This is a negative for Dr Reddy's, which received a complete response letter for its generic semgalutide filing in November 2025. Citi said it is cautious on Dr Reddy's semgalutide opportunity. The brokerage has estimated $50 million in sales for financial year 2027-2028, which is well below Street expectations.

Of the 40 stocks who have coverage on the stock, 14 each have "buy" and "sell" ratings while 12 have a "hold" recommendation.

Shares of Dr. Reddy's Laboratories are trading 1.1% lower on Thursday at ₹1,228.9. The stock is down from its 52-week high of ₹1,405.9.

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