Dr Reddy's shares tank nearly nearly 7% on observations from USFDA for Duvvada plant

Shares of Dr Reddy's Laboratories Wednesday tumbled nearly 7 per cent after the company said the US health regulator has issued eight observations after inspecting its formulations plant at Duvvada, Visakhapatnam.

The scrip after making a weak opening further tumbled 6.64 per cent to Rs 2,425 on BSE.

At NSE, shares of the company slumped 6.60 per cent to Rs 2,423.05.

"The audit of our formulations manufacturing facility at Duvvada, Visakhapatnam, by the US Food and Drug Administration (USFDA), has been completed. We have been issued a Form 483 with eight observations, which we are addressing," the company said in a regulatory filing Tuesday.

As per USFDA, a Form 483 is issued to a firm's management at the conclusion of an inspection when investigator has observed any conditions that in its judgment may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related Acts.

It notifies the company's management of objectionable conditions.