Dr.Reddy’s gets some reprieve

Dr.Reddy’s Labs had a lot of reason to cheer today on Dalal Street. The stock rose over 2% to Rs.2681 and continues to remain in the green. Volumes remain calm showing there is interest but not a clamor to get the shares.

There was finally good news from Dr.Reddy’s Labs. The company’s Miryalaguda plant has received an Establishment Inspection Report (EIR) from the U.S. FDA. This is the same plant which in Feb’17 had received the Form 483 with three observations.

This means the plant has got closure from the US audit and it can now get back to conducting its business. Miryalaguda plant supplies active ingredients for company’s captive consumption as well as for its customers.

This is a small relief considering the fact that two of its plants - Srikakulam which makes API and Duvvada which has the oncology and harmonal injectable facility continue to remain under the FDA lenses.