Goldman downgrades Dr. Reddy’s to Sell on generic Ozempic concerns

Goldman Sachs analyst Shyam Srinivasan downgraded Dr. Reddy’s (RDY) to Sell from Neutral with a price target of INR 1,075, down from INR 1,225. The firm believes the company’s generic Ozempic opportunity in Canada is likely to be lower than expectations. The generic Ozempic opportunity for early the filers in Canada “is likely to be short-lived with competition set to intensify faster than originally anticipated,” the analyst tells investors in a research note. In addition, Dr. Reddy’s pipeline for larger value drugs “remains limited,” Goldman says.