Shares of Dr Reddy’s Laboratories today slumped 10 per cent on reports that USFDA might withhold approval of the company’s fresh drugs and stop import if no corrective action is taken.
The stock plunged 10 per cent to Rs 3,049.75 on the BSE. On the NSE, shares of the company tumbled 8.53 per cent to Rs 3,098.60.
The stock was the worst performer on both the Sensex and the Nifty.
The regulator said it had found several violations with regard to current good manufacturing practices (CGMP) at three of its plants.
“At Dr Reddy’s Laboratories’ facilities, we identified significant deviations from CGMP for manufacturing of active pharmaceutical ingredients (APIs)... we found significant violations of CGMP regulations for finished pharmaceuticals,” the USFDA noted.
Meanwhile, the BSE has sought clarification from Dr Reddy’s on this issue.