Dr Reddy's plans generic Ozempic launch in Canada

India’s Dr Reddy’s, which reported an 86% slump in profit on Tuesday, said it ​aims to launch the generic version of blockbuster diabetes drug ‌Ozempic in Canada in the next few days, as it bets on semaglutide to be a key growth driver.

Last month, the company received approval for its generic semaglutide ​treatment for diabetes from Canada’s health regulator. Semaglutide is the active ​component in Danish drugmaker Novo Nordisk’s weight-loss and diabetes drugs Wegovy ⁠and Ozempic.

Dr Reddy’s said it expects the contribution of its semaglutide ​products to be “meaningful”. The patent for semaglutide in India expired in March.

India’s drug ​regulator has also approved the company’s generic semaglutide tablets, which it aims to launch in the next few days, said M V Ramana, CEO of global generics.

In March, Dr Reddy’s launched ​its semaglutide injectable drug Obeda in India to treat diabetes, and the ​company is considering launches in Brazil and other markets after patents expire.

Its consolidated net ‌profit ⁠dropped to 2.21 billion rupees ($23.1 million) in the quarter ended March 31, from 15.93 billion rupees a year earlier, hurt by impairment charges totalling 2.28 billion rupees linked to its discontinued cancer therapy program.

Dr Reddy’s said it decided ​to stop some ​R&D programs related ⁠to its Chimeric Antigen Receptor T-cell (CAR-T) therapy, which is a type of cancer treatment.

Revenue from operations fell 11.5% to ​75.46 billion rupees, below analysts’ estimate of 82.46 billion ​rupees, hit ⁠by pricing pressure and increasing competition in its key U.S. market.

Sales were also hurt by slowing demand for lenalidomide, a generic version of Bristol-Myers Squibb’s cancer ⁠drug ​Revlimid, which has been a strong growth ​driver for Dr Reddy’s over the last few years.

Competition has intensified following lenalidomide’s patent expiries and ​settlement-driven generic launches.