Dr Reddy's shares tank nearly 15%; m-cap dips by Rs 10,628 cr

Shares of drug firm Dr Reddy's Laboratories plummeted nearly 15 per cent today after the company said it has received a warning letter from US drug regulator over quality issues at its two API manufacturing plants and a formulation unit in Andhra Pradesh and Telangana.
The stock took severe beating and tumbled 14.65 per cent to settle at Rs 3,629.55 on BSE. During the day, it plunged 14.99 per cent to Rs 3,615.
At NSE, shares of the company dived 14.56 per cent to settle at Rs 3,630.65.
The company's market valuation dipped by Rs 10,628.05 crore to Rs 61,915.95 crore.

The stock was the biggest loser on both the Sensex and the Nifty.
On the volume front, 3.79 lakh shares of the company changed hands at BSE and over 40 lakh shares were traded at NSE during the day.

Dr Reddy's CEO G V Prasad said the company will respond with a comprehensive plan to address the observations by the US Food and Drug Administration (USFDA).
The company hopes for a re-audit of the three plants by USFDA once the observations made by it are rectified or fulfilled, said DRL President, CFO and Global Head of HR, Saumen Chakraborty.
DRL said in a regulatory filing that it "has received a warning letter issued by the US FDA dated November 5, 2015 relating to its API manufacturing facilities at Srikakulam in Andhra Pradesh and Miryalaguda in Telangana, as well as Oncology formulation manufacturing facility at Duvvada, Visakhapatnam in Andhra Pradesh."

This action follows the earlier inspections of these sites by the agency, it added.
In the broader market, the benchmark BSE Sensex ended 38.96 points lower at 26,265.24.