Dr. Reddy’s Laboratories Extend Losses

Dr. Reddy’s Laboratories Limited extended its losses to touch a fresh 52-week low of Rs 2712.7 per share on Thursday.

At the time of filing this report at 1420 hours, the stock was trading at Rs 2716.4 per share, down by Rs 135 per share or 4.7%. The stock started declining as investors became worried after the company’s Duvvuda oncology formulation facility (Unit-7) received 13 observations from the US Food and Drug Administration (USFDA).

The facility is located at Visakhapatnam Special Economic Zone (VSEZ). In November 2015, the unit-7 had received a warning letter for batch failures.

Two other plants of the company at Srikakulam, namely the API plant (CTO-6) and SEZ formulation facility will also be subject to inspection in the second week of April 2017.

The stock is the biggest contributor to the BSE Healthcare index's losses. BSE Healthcare index is trading at 15256 levels, down by 64 points or 0.4%. The stock has plunged nearly 11% on a YTD basis.

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