Dr Reddy's Laboratories faces potential delays in its semaglutide launch timeline for the Canadian market, according to recent analysis by Dam Capital. The brokerage firm has highlighted concerns regarding the pharmaceutical company's ability to meet its original launch schedule for the diabetes medication.

Revised Launch Timeline

Sandoz has indicated a potential shift in the launch timeline, projecting a H2 CY26 launch window for semaglutide in Canada. This represents a notable change from earlier expectations and could impact the company's market entry strategy.

Regulatory Approval Concerns

The analysis suggests that regulatory approvals for both Brazil and Canada markets may experience delays compared to the previously communicated H1 CY26 guidance. This development could affect Dr Reddy's Laboratories' international expansion plans and revenue projections for these markets.

Market Impact

The potential delay in semaglutide launch represents a significant development for Dr Reddy's Laboratories, particularly given the growing demand for diabetes medications in international markets. The company's ability to capture market share in Canada and Brazil may be impacted by the extended timeline for regulatory approvals and subsequent product launch.

Dr. Reddy's Laboratories has received official communication from the U.S. Securities and Exchange Commission concluding a multi-year investigation into allegations of improper payments to healthcare professionals without recommending enforcement action against the pharmaceutical company.

Investigation Background and Timeline

The investigation originated from an anonymous complaint received in November 2020, which alleged improper payments to healthcare professionals in Ukraine and potentially other countries. These allegations raised concerns about potential violations of U.S. anti-corruption laws, including the U.S. Foreign Corrupt Practices Act.

Following the complaint, Dr. Reddy's Laboratories took immediate action by engaging a U.S. law firm to conduct a detailed investigation under the directions of the company's Board of Directors committee. The matter was promptly disclosed to multiple regulatory authorities including the U.S. Department of Justice, Securities and Exchange Commission, and Securities Exchange Board of India.

Company Cooperation and Response

Throughout the investigation period, Dr. Reddy's Laboratories maintained full cooperation with all relevant authorities. The company provided requested documents and information to the SEC and DOJ through various submissions and presentations relating to both the initial complaint and additional complaints concerning certain other markets that emerged during the investigation process.

The pharmaceutical company had previously acknowledged in its quarterly financial results and audited financial statements that such investigations could potentially result in government or regulatory enforcement actions in the United States and foreign jurisdictions, with possible civil and criminal sanctions under applicable laws.

SEC Conclusion and Official Communication

On February 23, 2026, Dr. Reddy's Laboratories received the conclusive letter from the SEC regarding the investigation. The communication represents a significant development in the case that has been ongoing for over five years.

The SEC letter specifically stated that based on the information available to it, the commission has concluded the investigation and does not intend to recommend any enforcement action against the company at this time. However, the communication includes standard regulatory language noting that such notice should not be construed as an indication that the party has been exonerated or that no action may ultimately result from the staff's investigation.

Regulatory Compliance and Disclosure

The announcement was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, demonstrating the company's commitment to transparent communication with stakeholders and regulatory compliance across multiple jurisdictions where its securities are traded.