Dr Reddy's Lab drops on buzz surrounding Duvvada facility

Dr Reddy's Laboratories fell 2.73% to Rs 2,342 at 12:41 IST on BSE on media reports that an establishment inspection report has been issued to the company's Duvvada facility with some issues raised in it.

Meanwhile, the S&P BSE Sensex was up 39.46 points or 0.12% at 33,851.72.

On the BSE, 52,000 shares were traded on the counter so far as against average daily volumes of 51,406 shares in the past one quarter. The stock had hit a high of Rs 2,415 and a low of Rs 2,299 so far during the day. The stock had hit a 52-week high of Rs 3,203.95 on 6 January 2017 and a 52-week low of Rs 1,901.65 on 11 August 2017.

The stock had outperformed the market over the past one month till 2 January 2018, gaining 7.95% compared with the Sensex's 2.98% rise. The stock had, however, underperformed the market over the past one quarter, advancing 3.36% as against the Sensex's 8.08% rise. The scrip had also underperformed the market over the past one year, sliding 22.02% as against the Sensex's 27.14% rise.

The large-cap company has equity capital of Rs 82.94 crore. Face value per share is Rs 5.

According to a media report, an establishment inspection report (EIR) has been issued to Dr Reddy's Laboratories' Duvvada facility by the United States Food and Drug Administration. The report further stated that Duvvada facility status continues to be classified as official action initiated (OAI). In pharmaceuticals parlance, OAI means regulatory/admin sanctions by the drug regulator are initiated, as per reports.

On a consolidated basis, Dr Reddy's Laboratories' net profit fell 1.1% to Rs 305.40 crore on 1.1% decline in net sales to Rs 3546 crore in Q2 September 2017 over Q2 September 2016.

Dr Reddy's Laboratories is an integrated global pharmaceutical company.

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