Dr Reddy's recovers on clarification of regulatory concerns
The stock of Dr. Reddy's Laboratories was buzzing on the bourses after falling over 4 per cent on Wednesday. The stock was punished in the last trading session following media reports citing the status of the company's Duvvada facility in Visakhapatnam.
The report commented that the Duvvada facility continues to be classified as official action initiated (OAI), which suggests reinspection is pending.
At 11:02 hours Dr. Reddy's Laboratories (DRL) was trading at Rs. 2,380.55 per share, up Rs. 44.35 or 1.90 per cent. DRL said in responses to a clarification demand by the stock exchanges that it has no updates regarding the EIR for Duvvada facility, on Wednesday. Earlier on November 21, the company intimated the exchanges that although USFDA has issued an EIR, the status of the facility is unchanged and the inspection was not closed. The US drug regulatory might reinspect the site in 2018. But on December 11, DRL had informed the bourses that USFDA had issued EIR and closed the audit of Duvvada facility.
On Wednesday, Dr Reddy's Laboratories ADR ended lower by 1.81 percent at US$ 37.40.