Brief respite for Dr Reddy's, recovery some time away

For Srikakulam facility, the clearance may come sooner and this is important for new launches

After a series of regulatory setbacks, Dr Reddy's Laboratories got some respite with its Srikakulam facility getting only two observations by USFDA after a recent inspection. The fact that the company's Duvvada facility inspections a few weeks ago had led to 13 observations, many of which are said to be serious in nature had kept the Street nervous. The stock that had fallen to of Rs 2,560, has seen some recovery and is currently trading at Rs 2,711 levels.

The Srikakulam facility is among the three facilities for Dr Reddy's that had received warning letters. Majority of important filings for US