Dr Reddy's, OneSource shares decline up to 3% after Delhi HC bans Semaglutide sales in India

Shares of Dr Reddy's Laboratories Ltd. and OneSource Specialty Pharma Ltd. declined up to 3% on Monday, June 2, after the Delhi High Court on Friday restrained the companies from selling semaglutide in the domestic market following a patent infringement plea by Novo Nordisk.

However, the court has not barred Indian companies from manufacturing and exporting the drug.

It is now known that OneSource Specialty Pharma is a supplier for Dr Reddy's. Both companies are still allowed to manufacture and import the drug. Canada will go off the patent in January 2026. Meanwhile, experts are also expecting Novo Nordisk to file an appeal.

Novo Nordisk said it is taking active steps to protect its inventions in India.

It said its semaglutide patents are protected in India and it is expecting the continued support and protection in the country, which will help stimulate the companies' motivation to develop innovative medicines and bring new treatments to patients.

It said it did not want to comment on a sub-judice matter.

Meanwhile, Dr Reddy's refused to comment. It said the matter is currently sub-judice and it will not comment on it at the moment.

The case

Dr Reddy's Laboratories had received the manufacturing licence for semaglutide in December 2024 and it began production in April 2025.

Novo Nordisk filed a cease and desist notice in May. Dr Reddy's on May 14 then moved the high court seeking the revocation for Novo Nordisk' petition for semaglutide.

On May 26, Novo Nordisk filed a patent infringement suit against Dr Reddy's Laboratories and Onesource.

Novo Nordisk alleged that Dr Reddy's and Onesource are importing large quantities of semaglutide API into India to manufacture and export formulations.

It also alleged that Onesource is importing the semaglutide active pharmaceutical ingredient (API) and its injections in commercial quantities and exporting the same in commercial quantities.

Also Watch | Rajeshwari Hariharan, Counsel at the Delhi High Court, spoke at length about the major setback for Dr Reddy's and OneSource as the court barred both from selling semaglutide.

The Indian Patent Act prevents making, using, offering for sale, selling, exporting or importing of the drug.

Shares of Zydus Life and OneSource declined 1.4% and 3.07% to intraday lows of ₹1,232.6 and ₹1,862.9 apiece, respectively, on Monday, June 2.

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