Dr. Reddy's Lab bucks weak market trend

Dr. Reddy's Laboratories rose 1.14% to Rs 2780.30 at 11:19 IST on BSE after the company said its Hyderabad unit received no observation under form 483 by the US drug regulator.

The announcement was made after market hours on Friday, 22 March 2019.

Meanwhile, the S&P BSE Sensex was down 367 points, or 0.96% to 37,797.61.

On the BSE, 54,000 shares were traded in the counter so far compared with average daily volumes of 24,000 shares in the past two weeks. The stock had hit a high of Rs 2789.60 and a low of Rs 2731.10 so far during the day. The stock hit a 52-week high of Rs 2,875 on 4 February 2019. The stock hit a 52-week low of Rs 1,888 on 21 May 2018.

Dr Reddy's Laboratories announced that the audit of research and development facility of Aurigene Discovery Technologies, a wholly owned subsidiary, situated at Miyapur, Hyderabad by the US Food and Drug Administration (USFDA), completed on 21 March 2019. No FDA 483 was issued at the end of inspection.

Meanwhile, the drug maker said that the United States District Court for the District of New Jersey has granted in part and denied in part its motion to dismiss a U.S. Securities Class Action Lawsuit.

On 21 March 2019, the United States District Court for the District of New Jersey issued its decision (dated 20 March 2019) granting in part and denying in part the drug maker's Motion to Dismiss. The court has dismissed plaintiff's claims with respect to 17 out of the 22 alleged misstatements. Dr Reddy's Laboratories said it believes that the remaining alleged claims of misstatements are without merit and intends to vigorously defend itself against them. The announcement was made after market hours on Friday, 22 March 2019.

On a consolidated basis, net profit of Dr Reddy's Laboratories rose 65.28% to Rs 500.30 crore on 1.16% rise in net sales to Rs 3850 crore in Q3 December 2018 over Q3 December 2017.

Dr Reddy's Laboratories is an integrated pharmaceutical company.

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