Dr.Reddys rises 7%

Dr.Reddys Labs announced some good news today morning.

This is with regard to the audit of its API manufacturing plant at Srikakulam, Andhra Pradesh (CTO VI). The company said that this unit has received the Establishment Inspection Report (EIR) from US FDA.

This indicates closure of the audit and the inspection classification of this facility is determined as "Voluntary Action Indicated" (VAI).

This unit was issued warning letter in November, 2015 after the inspection in 2014, and was under "Official Action Indicated" classification till now.

With this, all facilities under warning letter are now determined as voluntary action indicated” or VAI, which means its facilities are considered compliant with current good manufacturing practices.

The stock price reacted positively to this news; it opened 1% higher at Rs.3875 and rose further by 7% to Rs.4099.90.