By Rishika Sadam and Kashish Tandon

HYDERABAD, Jan 21 (Reuters) - Indian drugmaker Dr

Reddy's, which reported a smaller-than-expected fall

in quarterly profit on Wednesday, said that it has received an

approval from the country's drug regulator to manufacture and

sell the generic ‌version of blockbuster diabetes drug Ozempic.

The company plans to sell 12 million injectable Semaglutide

pens in the first ​year of launch.

The patent for Semaglutide, the active ingredient in Novo

Nordisk's drugs ‍Wegovy and Ozempic, expires in March

2026, allowing Reddy's and other ⁠Indian generic drugmakers,

racing ⁠to grab a share of the booming weight-loss market, to

launch generic versions of the drugs.

Ozempic is ‌also used off-label for weight loss due ​to its

appetite-suppressing effects.

M V Ramana, CEO of branded markets, said that while they

have approval for the generic Ozempic for diabetes, they ⁠are

still awaiting the regulator's nod for ‍the obesity ​drug Wegovy.

U.S. drugmaker Eli Lilly ( LLY ) and Novo launched

Mounjaro, Wegovy, and Ozempic in India last year, with sales

doubling shortly after launch.

Reddy's plans to collaborate ‍with local partners in

India for the Semaglutide launch and has sufficient production

capacity to meet demand, Ramana said on a media call on

Wednesday.

The company also aims to launch Semaglutide in Canada

this year, and also in emerging markets.

Semaglutide sales are expected to be a key growth driver

for Reddy's domestic business. The ​company has ‍been expanding

its India operations with new product launches and

collaborations, contributing to a smaller-than-expected profit

decline.

Revenue from the company's India business rose 19% to

16.03 ​billion rupees, aided by price hikes and contributions

from Johnson & Johnson's anti-vertigo therapy brand Stugeron,

acquired in September.

Consolidated net profit fell 14.4% to 12.1 billion

rupees ($132 million) in the quarter ended December 31,

surpassing analysts' average estimate of a fall to 10.70 billion

rupees, according to LSEG data.

The profit decline, the first in five quarters, is due

to slowing sales of Lenalidomide, ​a generic version of

Bristol-Myers Squibb's ( BMY ) cancer drug Revlimid, which has

faced pricing pressure in the U.S. and stiff competition.

Total revenue from operations rose 4.4% to 87.53 billion

rupees, exceeding analysts' estimate of 84.17 billion ‍rupees.