USFDA classify facilities under warning as VAI; Dr Reddy shines

Dr Reddy today informed the bourses that the company has received an establishment inspection report (EIR) from USFDA for API manufacturing plant at Srikakulam, Andhra Pradesh (CTO VI) facility which was audited as on January 29, 2020.

The company further said that this inspection report (EIR) from USFDA, for Srikakulam facility, indicates closure of the audit. Besides, the inspection classification of this facility is determined as voluntary action indicated (VAI).

The above-mentioned site was issued a warning letter in November 2015 and was under OAI status till now. However with this, all facilities under warning letters are now determined as VAI, which is positive for the company.

The stock of Dr Reddy responded positively to this development and surged nearly seven per cent in today’s trading session to touch an intraday high of Rs 4,099.9 on BSE.

Dr. Reddy is an integrated pharmaceutical company operates through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products – Dr. Reddy’s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations.