Stocks

Dr Reddy's shares plunge over 2% as Vizag unit inspection not yet closed

BL Internet Desk Chennai | Updated on January 09, 2018 Published on November 22, 2017

Shares of Dr Reddy's Laboratories plunged as much as 2 per cent on Tuesday as US Food and Drug Administration (USFDA) has not yet ‘closed’ its inspection of the formulations unit of Dr Reddy’s Laboratories Ltd located at Duvvada in Visakhapatnam.

Following a weak open at Rs 2,375 against the previous close of Rs 2,390.85, the scrip touched an intraday high of 2,382.95 and a low of Rs 2,342. In terms of equity volume, 0.36 lakh shares were traded on the BSE.

The company shares ended down by 1.23 per cent at Rs 2,361.35.

In an update to the bourses on Tuesday, the Hyderabad-based Dr Reddy’s had said the company had received the Establishment Inspection Report (EIR) for the facility from the US regulator.

The USFDA had issued a warning letter to the drug major on November 5, 2015, regarding the Duvvada unit.

The company plans to request for a re-inspection of the facility in 2018 after further discussions on scheduling with the USFDA.

Published on November 22, 2017
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