Dr Reddy's Stock Drops 5% After USFDA Observations

New Delhi, Dec 11 (PTI) Shares of Dr Reddy's Laboratories settled 5 per cent lower on Monday after the company said the US health regulator issued three observations for the company's Hyderabad-based research facility.

The stock of the company plunged 5.04 per cent to close at Rs 5,472.90 apiece on the BSE. On the NSE, Dr Reddy's Laboratories scrip declined 5 per cent to end at Rs 5,475.70 apiece.

During the day, shares of the company touched a low of Rs 5,371.75 on the BSE and Rs 5,370 apiece on the NSE.

On the volume front, 18.98 lakh equity shares were traded on the NSE, while 40,000 shares changed hands on the BSE.

Meanwhile, the 30-share BSE Sensex jumped 102.93 points, or 0.15 per cent, higher to close at 69,928.53, while NSE Nifty rose 27.70 points to settle at 20,997.10.

In a regulatory filing on Friday, Dr Reddy's Laboratories said US Food and Drug Administration (USFDA) had completed their inspection and issued a Form 483 with three observations regarding the firm's R&D facility in Bachupally, Hyderabad.

The US health regulator had inspected the facility from December 4-8, it said.

As per USFDA, Form 483 is issued to a firm's management at the conclusion of an inspection when the investigator has observed any conditions that may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related Acts.

However, the pharmaceutical company said it will address the issue within the stipulated timeline.