Plant clearance removes overhang for Dr Reddy's

Nod to Bachupally plant raises hopes for clearance of its Srikakulam unit

With the Bachupally formulation plant of Dr Reddy’s Laboratories getting an Establishment Inspection Report (EIR) from the US Food and Drug Administration (US FDA), investors had reason to feel good. The receipt of an EIR marks the end of successful inspections by the US drug regulator. The plant had received 11 observations from the US FDA during its April 2017 audit, raising concerns on the company’s prospects, as its three major facilities have already received warning letters.
 
Since the Bachupally plant, near Hyderabad, accounts for about 55-60 per cent of Dr Reddy’s US sales — and also has the