Dr. Reddy's Laboratories - Gets USFDA observation for Duvvada oncology formulation Facility: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking):

"Dr Reddy's Laboratories got 13 observations from the USFDA for its Duvvada oncology formulation facility. The company didn't specify the nature of these observations. The oncology formulation facility called Unit-7 is located in Visakhapatnam Special Economic Zone (VSEZ) at Duvvada. The site manufactures cytotoxic and hormonal injectables and is an important plant given Dr Reddy's focus on complex generic filings. The Unit-7 had received a warning letter in November 2015 for batch failures, a probable microbial contamination and certain lapses quality control procedures. Following the letter, DRL completed remediation work and sought USFDA re-inspection. Since after the redemption work, also the company got observations, this will further delay the launch of the complex products of the company in the US markets. However, given the valuations we remain NEUTRAL on the stock."

Shares of DR.REDDY'S LABORATORIES LTD. was last trading in BSE at Rs.2708.6 as compared to the previous close of Rs. 2851.4. The total number of shares traded during the day was 237409 in over 16432 trades.

The stock hit an intraday high of Rs. 2800 and intraday low of 2702.05. The net turnover during the day was Rs. 648901539.

Source : Equity Bulls

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