Dr Reddy’s Laboratories has dipped 10% to Rs 3,050 on the BSE in early morning trade on reports that the United States Food and Drug Administration (USFDA) said it might withhold approval of the company's fresh drugs and stop import if no corrective action is taken.
On the National Stock Exchange (NSE), the stock slipped nearly 8% to Rs 3,130.
The regulator said it had found several violations with regard to current good manufacturing practices (CGMP) at three of its manufacturing facilities-Srikakulam, Miryalaguda and Duvvada. CLICK HERE TO READ FULL REPORT.
On November 5, 2015, the country's second-largest drug maker received a warning letter from the US drug regulator relating to two of its active pharmaceutical ingredients (API) manufacturing plants and a formulation plant in Andhra Pradesh and Telangana. CLICK HERE TO READ LETTER
In response to the letter, Dr Reddy’s Laboratories CEO G V Prasad had said that the company is in the process of shifting some of the products from these plants to other facilities and considering third party assessment for its plants.
Since the warning letter received from the USFDA, the stock of drug maker underperformed the market by falling 27% from Rs 4,314 on the BSE. The S&P BSE Sensex dipped 2.6% during the same period.
At 9:16 AM, the stock was down 8% at Rs 3,134 on the BSE. A combined 190,265 shares changed hands on the counter on the BSE and NSE.