OneSource Falls 7% Then Rebounds on Dr Reddy’s Delay

OneSource Specialty Pharma shares fell 7% before recovering sharply, hit by a supply delay at key client Dr Reddy’s Laboratories.

The disruption traces back to a quality issue at Dr Reddy’s. On Thursday, the company told stock exchanges that select batches of its diabetes and weight loss drug, semaglutide, were found out of specification due to a problem with the raw ingredient used to make it.

Dr Reddy’s has paused commercial supply while it validates its manufacturing process. The impact on OneSource stems from its role as the exclusive fill-and-finish partner for this product.

OneSource handles the final stage of production, filling and packaging the drug before it ships out, so investors initially read the supply halt as a direct risk to its near-term business.

There’s reassurance in the details though. Dr Reddy’s confirmed patient safety isn’t at risk and that no flawed batches reached the market. Supplies are expected to resume by late October or early November.

Separately, Torrent Pharmaceuticals has started a precautionary recall of select batches of its Semalix injection pens, though both companies have clarified this recall is unrelated to the API issue.

While Dr Reddy’s shares declined following the announcement, OneSource clawed back its earlier losses as the session progressed.

At 13:11 pm, shares of the fill-and-finish specialist were trading at Rs 1,631.90, up 0.38% for the day. The stock remains well off its 52-week high of Rs 2,088, reached in July last year.

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