Dr Reddy tumbles on buzz of halting worldwide supply of Ranitidine

Dr.Reddy's Laboratories fell 3.27% to Rs 2736 on reports that the drug major has suspended supply of its drug Ranitidine worldwide.

According to reports, Dr. Reddy's Laboratories has suspended supply of its drug Ranitidine worldwide as a precautionary measure, following the ongoing probe by the US Food and Drug Administration (USFDA) into the reported impurity N-nitrosodimethylamine in it at low levels.

Ranitidine is an over-the-counter and prescription drug which decreases the amount of acid created by the stomach.

Meanwhile, the S&P BSE Sensex was up 1100.61 points or 2.90% to 39,115.23. The market surged after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.

On the BSE, 27,000 shares were traded in the Dr.Reddy's Laboratories counter so far compared with average daily volumes of 23,000 shares in the past two weeks. The stock hit a high of Rs 2850 and a low of Rs 2701.1 so far during the day.

The stock hit a 52-week high of Rs 2965.2 on 02 May 2019. The stock hit a 52-week low of Rs 2065.3 on 15 Feb 2019.

On a consolidated basis, the pharmaceutical company's net profit rose 42.1% to Rs 676.50 crore on a 3.3% increase in net sales to Rs 3843.60 crore in Q1 June 2019 over Q1 June 2018.

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

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