Shares of Shaily Engineering Plastics declined sharply on Thursday, October 30, falling 6.68% to Rs 2,383.40, after its key client Dr. Reddy’s Laboratories came under regulatory pressure in Canada relating to its Semaglutide injection approval process.
The Pharmaceutical Drugs Directorate of Canada issued a Notice of Non-Compliance (NON) to Dr. Reddy’s for its Semaglutide Abbreviated New Drug Submission (ANDS), seeking additional data and clarification before approval. The update triggered weakness in Dr. Reddy’s stock, which dropped more than 4% in early trade, and weighed on Shaily given its supplier relationship.
Shaily Engineering Plastics manufactures injection-molded plastic components used in pharmaceutical delivery systems and medical device packaging for Dr. Reddy’s and other global healthcare companies. While the NON does not imply rejection of the product, the delay in approval has led to cautious sentiment around related supply-chain beneficiaries, including Shaily.
Semaglutide pipeline context
Dr. Reddy’s stated that it remains confident in the quality and safety of its Semaglutide product and intends to provide clarifications within the stipulated timeline. The patent for Semaglutide expires in January 2026, and the company expects global opportunities across 87 markets, including India, Brazil, and Turkey. Analysts anticipate five more filers in the Semaglutide space, with potential approval delays of roughly 5–12 months, and a revenue opportunity estimated at $100 million in FY27 once cleared.
Shaily’s exposure to Dr. Reddy’s device ecosystem is strategic, and product-specific regulatory developments can influence short-term stock movement even though long-term demand visibility remains linked to global diabetes and obesity treatment markets.
Market performance
| Metric | Latest |
|---|---|
| Price | Rs 2,383.40 |
| Daily Move | -6.68% |
| Previous Close | Rs 2,554.10 |
| Day Range | Rs 2,115.00 – Rs 2,441.60 |
| Market Cap | Rs 110.09 billion |
| P/E Ratio | 94.27 |
| 52-Week Range | Rs 922.65 – Rs 2,670.00 |
The correction follows a strong run-up in recent months, with the stock trading near all-time highs before the pullback.
Outlook
While the regulatory delay in Canada related to Dr. Reddy’s Semaglutide rollout has impacted near-term sentiment, management commentary from Dr. Reddy’s and analyst expectations suggest a broader global opportunity over 12–15 months. Shaily Engineering Plastics remains positioned as a critical supply-chain participant, and investors will watch for regulatory progress and device order visibility from its pharmaceutical partners in the coming quarters.
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