Dr Reddy's Labs turns volatile; stock rebounds 32% from day's low on NSE

Dr Reddy's Laboratories had fallen 30 per cent to Rs 1,873 apiece earlier in the day, also its 52-week low on the NSE.

Shares of Dr Reddy’s Laboratories turned volatile falling 30 per cent to Rs 1,873 apiece, also its 52-week low on the National Stock Exchange (NSE), after media reported Jefferies, in its research note, said that the Form 483 issued by US Food and Drug Administration (US FDA) to drug firm’s Bachupally plant contains four repeat observations out of the total 11 observations.

At 11:14 am; Dr Reddy’s Laboratories was trading 7 per cent lower at Rs 2,474, recovering 32 per cent from its early morning low on the back of heavy volumes on the NSE.

On the BSE, the stock was quoting at Rs 2,480, bouncing back 20 per cent from its intra-day low of Rs 2,065. The trading volumes on the counter jumped three-fold with a combined 4.11 million equity shares changed hands on the NSE and BSE so far.

On February 8, 2019, Dr Reddy’s Laboratories informed the stock exchanges that the US Food and Drug Administration (USFDA) has issued form 483 with 11 observations for its manufacturing-3 facility at Bachupally in Hyderabad. The company said it will address them comprehensively within the stipulated timeline.

Analysts at the firm wrote that, among the observations issued, two of them are related to lack of space as well as drains. It has termed one of the observations relating to facility structure being negative. Going forward, the company’s response to the US FDA letter will hold the key, according to a CNBC-TV18 report.