Pharma stocks dropped on Monday morning after the Delhi High Court, on Friday, barred several companies from selling semaglutide in India. The order followed a patent infringement case filed by Novo Nordisk, prompting concerns in the market and impacting shares of domestic pharmaceutical firms involved in the drug’s production or sale.
Semaglutide, a GLP-1 receptor agonist for diabetes and obesity, is rapidly transforming India’s healthcare landscape. In 2024, the Indian semaglutide market reached USD 25.8 million and is projected to soar to USD 347.5 million by 2035, driven by rising obesity (254 million affected) and strong demand for oral Rybelsus, which now dominates with 69% market share.
However, the court has not barred Indian companies from manufacturing and exporting the drug. Moreover, it has come to light that OneSource Specialty Pharma supplies the drug to Dr. Reddy’s. Despite the court order, both companies are still allowed to make and bring the drug into India. In Canada, the patent will expire in January 2026. Experts also think Novo Nordisk might challenge the ruling.
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Novo Nordisk stated it is actively working to protect its semaglutide patents in India. The company emphasized that patent protection supports innovation and encourages the development of new medicines. It expects continued support from Indian authorities to ensure ongoing innovation and improved access to advanced treatments for patients.
Furthermore, Dr. Reddy’s Laboratories received a manufacturing license for semaglutide in December 2024 and began production in April 2025. In May, Novo Nordisk issued a cease-and-desist notice, prompting Dr. Reddy’s to approach the Delhi High Court on May 14 to revoke Novo Nordisk’s petition.
On May 26, Novo Nordisk filed a patent infringement suit against Dr. Reddy’s and Onesource. It claimed both were importing large amounts of semaglutide API into India to make and export the drug. Novo also alleged Onesource was importing and exporting the API and injections, violating India’s Patent Act that restricts such actions.
The shares of Onesource Specialty Pharma Ltd and Dr Reddys Laboratories Ltd are trading at Rs 1,942.45 and Rs 1,245.40 per share, declined by 4 percent and 2 percent respectively from the intra-day low.
Written by Abhishek Singh
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