Dr Reddy's Lab drops 20.4% in three days after USFDA issues warning letter

Dr Reddy's Laboratories lost 3.41% to Rs 3,385 at 11:26 IST on BSE, with the stock extending its recent slide triggered by the company receiving a warning letter issued by the US drug regulator relating to its two manufacturing facilities.

The announcement was made during market hours on Friday, 6 November 2015. Shares of Dr Reddy's Laboratories had tumbled 14.65% to Rs 3,629.55 on Friday, 6 November 2015. The stock has declined 20.4% in three trading sessions from Rs 4,314.35 on Thursday, 5 November 2015.

Meanwhile, the BSE Sensex was down 134.33 points, or 0.51%, to 25,987.07

On BSE, so far 64,071 shares were traded in the counter, compared with an average volume of 30,762 shares in the past one quarter.

The stock hit a high of Rs 3,494.90 and a low of Rs 3,382.65 so far during the day. The stock hit a record high of Rs 4,382.95 on 20 October 2015. The stock hit a 52-week low of Rs 3,010 on 9 February 2015.

The stock had underperformed the market over the past one month till 9 November 2015, sliding 17.52% compared with 3.54% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 17.71% as against Sensex's 7.49% decline.

The large-cap company has an equity capital of Rs 85.29 crore. Face value per share is Rs 5.

On Friday, 6 November 2015, Dr Reddy's Laboratories announced that it has received a warning letter issued by the USFDA dated 5 November 2015 relating to the company's active pharmaceutical ingredients (API) manufacturing facilities at Srikakulam in Andhra Pradesh and Miryalaguda in Telangana, as well as oncology formulation manufacturing facility at Duvvada in Visakhapatnam, Andhra Pradesh. This action follows the earlier inspections of these sites by USFDA in November 2014, January 2015 and February 2015 respectively, Dr Reddy's Laboratories said in a statement.

Dr Reddy's Laboratories' consolidated net profit rose 25.7% to Rs 721.89 crore on 11.2% growth in net sales to Rs 3988.96 crore in Q2 September 2015 over Q2 September 2014.

Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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