Regulatory woes resurface for Dr Reddy's

Duvvada facility could require second re-inspection by US FDA

The Dr Reddy’s stock lost about three per cent in trade after the German drug regulator issued six major observations for the company’s Duvvada manufacturing facility in Visakhapatnam, Andhra Pradesh. The company will have to present a corrective and preventive action plan to the authorities and when this is approved, it will get a European Union (EU) good manufacturing practices certificate. Though products manufactured at the unit are not exported to the EU and thus there would be no revenue loss, lack of progress on this front is a negative.

Says an analyst at a domestic brokerage, “Given the US FDA