Dr Reddy's stock surges 6 pc on receiving EIR from USFDA

Shares of Dr Reddy's Laboratories today surged over six per cent in morning trade on the bourses after the company said it has received Establishment Inspection Report (EIR) from the USFDA for its Hyderabad facility.
The company yesterday said it has received an EIR from USFDA on December 11 as closure of audit for its formulations manufacturing plant - 3 at Bachupally, Hyderabad. Dr Reddy's was issued a form 483 with 11 observations.
Following the development, shares of the company opened on a bullish note at Rs 2,306, then surged to a high of Rs 2,328, registering a 6.13 per cent jump over its previous closing price.

Similar movement was seen on NSE, where the stock opened at Rs 2,324.50 and touched a high of Rs 2,326.40, up 6.08 per cent over its last close.
On April 28, the company had said:"These observations are mostly procedural in nature, reflecting the need to improve people's capabilities and strengthen documentation and laboratory systems. We will address them comprehensively within the stipulated time".