Dr Reddy’s Unveils Two New Semaglutide Brands Amid Supply Issues

Dr Reddy’s Laboratories has introduced two new generic brands of semaglutide, named Obeda Pro and Obeda Plus, following supply interruptions to its original Obeda injection. This development was confirmed through product images and marketing materials reviewed by Reuters, highlighting the company's efforts to stabilize availability amid manufacturing challenges.

Semaglutide, the active ingredient in Novo Nordisk’s blockbuster weight-loss medication Wegovy and diabetes treatment Ozempic, has seen growing demand in India’s pharmaceutical market. Dr Reddy’s launched Obeda, its generic version, in India in March and later expanded to Canada after semaglutide’s patent expired. The entry of multiple domestic manufacturers has intensified competition in this segment.

At a media briefing held on Friday, Dr Reddy’s acknowledged encountering production setbacks with Obeda injections in July. In response, the company shifted manufacturing to a partner’s facility to ensure continued supply. Unlike the Obeda injectable, which was affected by a quality concern involving impurities in the active ingredient, Obeda Pro and Obeda Plus are produced by Hetero Labs, a different contract manufacturer. These newer brands are already available on the market and are approved for both diabetes management and weight control.

Several distributors contacted by Reuters indicated that Dr Reddy’s may phase out the original Obeda injection, focusing instead on Obeda Pro and Obeda Plus. One distributor noted that stocks of Obeda injections were recalled due to technical issues, with the company directing them to the newer products. M.V. Ramana, CEO of Global Generics, explained that the company initially had two sources for semaglutide, its own Obeda product and a partner-manufactured version, and the current strategy does not necessarily imply a replacement but a supply adjustment.

Dr Reddy’s had recalled Obeda injections in July for "technical evaluation" after detecting impurities. This recall affected supplies in India and Canada, where batches were also withdrawn in August. The company stated that the oral form of semaglutide was not impacted. Dr Reddy’s plans to reintroduce its generic semaglutide in Canada within the current quarter and is targeting launches in Latin America and Africa in the near future.

Following the recall, analysts expressed concern that prolonged supply disruptions could lead Dr Reddy’s to lose market share in the competitive semaglutide space. The company has assured that it is on schedule to resolve the impurity issues and expects to relaunch Obeda injections by next month.

Packaging and supply records reviewed by Reuters show that Obeda was manufactured by OneSource Specialty Pharma, while the newer Obeda Pro and Obeda Plus are produced by Hetero Labs. Both new brands are offered in multiple dosage strengths, similar to Ozempic and Wegovy, allowing flexibility in treatment protocols.

The Indian semaglutide market is poised for significant expansion. Research firm Pharmarack projected that this segment could reach 80 billion rupees (approximately $844 million) by 2030. As of September, Dr Reddy’s had sold about 442,000 units of generic semaglutide in India, surpassing Sun Pharma’s 151,000 units, signaling strong market penetration despite recent challenges.

Dr Reddy’s move to diversify its semaglutide offerings reflects the broader trend of increasing availability of lower-cost alternatives to patented diabetes and weight-loss medications. The company’s efforts to address manufacturing hurdles and maintain a steady supply are crucial for sustaining its competitive position in this expanding sector.