Dr.Reddy’s calls in sick

The market was aware about Dr.Reddy’s facilities at Duvvada being inspected by the US FDA. And for some time now, the company has been trying to resolve the compliance issues at Duvvada and another facility, Srikakalum.

The company has intimated yesterday that the FDA completed inspection of is formulations manufacturing facility at Duvvada and issued a Form 483 with 8 observations.

This is dampening news as the worry is why the company is not able to get the green nod from the FDA since 2015 for both these facilities.  The company has scheduled product launches over Q3 and Q4 and thankfully these are not dependent on Duvvada and Srikakalum.

The stock price is obviously under pressure today morning with the stock going down over 6.5% to Rs.2425 and figures among the top five losers on the BSE currently.