Dr Reddy's Labs rises as USFDA concludes inspection

Dr Reddy's Laboratories rose 1.18% to Rs 2,587 at 11:25 IST on BSE after the company said that USFDA has closed the inspection of its formulations manufacturing facility at Duvvada, Visakhapatnam.

The announcement was made on Saturday, 16 February 2019.

Meanwhile, the S&P BSE Sensex was down 274.97 points, or 0.77% to 35,533.98

On the BSE, 79,000 shares were traded in the counter so far compared with average daily volumes of 98,000 shares in the past two weeks. The stock had hit a high of Rs 2,685 and a low of Rs 2,561.15 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 said that the company received a written communication from the USFDA, about the issuance of Establishment Inspection Report (EIR) for FTO VII, its formulations manufacturing facility at Duvvada, Visakhapatnam.

This site was included in the warning letter received from USFDA in November 2015. Subsequently, the site was audited by USFDA in March 2017 for which the company received EIR in November 2017, wherein the site's status remained unchanged. The site was again audited in October 2018. Based on the company's responses and follow up actions, the US FDA has concluded that this inspection is closed and has determined the inspection classification of this facility as Voluntary Action Initiated (VAI).

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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