Dr Reddy's spurts as company plans re-inspection

Dr Reddy's Laboratories surged 5.17% to Rs 2,395 at 15:21 IST after the company said it is planning to request a re-inspection in 2018 with the USFDA for its manufacturing facility at Duvvada, Vishakhapatnam, Andhra Pradesh.

The announcement was made during market hours today, 21 November 2017.

Meanwhile, the S&P BSE Sensex was up 118.45 points or 0.36% at 33,478.35.

On the BSE, 2.29 lakh shares were traded on the counter so far as against the average daily volumes of 71,095 shares in the past one quarter. The stock had hit a high of Rs 2,498 and a low of Rs 2,277.30 so far during the day. The stock had hit a 52-week high of Rs 3,257 on 18 November 2016. The stock had hit a 52-week low of Rs 1,901.65 on 11 August 2017.

The stock had underperformed the market over the past 30 days till 20 November 2017, sliding 4.01% compared with 2.99% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, surging 14.73% as against Sensex's 6.61% rise. The scrip, however, underperformed the market in past one year, declining 27.35% as against Sensex's 29.48% rise.

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

Dr Reddy's Laboratories said that it has received the establishment inspection report (EIR) from the US drug regulator for its manufacturing facility at Duvvada, Vishakhapatnam, Andhra Pradesh after the audit conducted in March.

In the cover letter to the EIR, it has explained that the inspection has not closed, and the site's status remains unchanged, but that United States Food & Drug Administration (USFDA) has released the EIR in order to be transparent about its regulatory process. The company is planning to request a re-inspection in 2018 after further discussion on scheduling with USFDA, Dr Reddy's Laboratories said.

On a consolidated basis, Dr Reddy's Laboratories' net profit fell 1.13% to Rs 305.40 crore on 1.88% decline in total income to Rs 3591.40 crore in Q2 September 2017 over Q2 September 2016.

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

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