Dr Reddy's Laboratories fell 4.51% to Rs 3,465.90 at 14:42 IST on BSE, extending Friday's 14.65% fall triggered by the company receiving a warning letter issued by the US drug regulator relating to its two manufacturing facilities.
The announcement was made during market hours on Friday, 6 November 2015. Shares of Dr Reddy's Laboratories fell 14.65% to Rs 3629.55 on Friday, 6 November 2015. The stock has fallen 19.67% in two trading sessions from Rs 4,314.35 on Thursday, 5 November 2015.
Meanwhile, the BSE Sensex was down 151.78 points, or 0.58%, to 26,113.46.
On BSE, so far 1.13 lakh shares were traded in the counter, compared with an average volume of 28,753 shares in the past one quarter.
The stock hit a high of Rs 3,588 and a low of Rs 3,453 so far during the day. The stock hit a 52-week high of Rs 4,382.95 on 20 October 2015. The stock hit a 52-week low of Rs 3,010 on 9 February 2015.
The stock had underperformed the market over the past one month till 6 November 2015, sliding 14.48% compared with 2.48% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 15% as against Sensex's 7.18% decline.
The large-cap company has an equity capital of Rs 85.29 crore. Face value per share is Rs 5.
Dr Reddy's Laboratories (Dr Reddy's Lab) will hold a conference call at 16.00 IST today, 9 November 2015, to clarify investors' queries on the warning letter issued by the United States Food and Drug Administration (USFDA) dated 5 November 2015.
On Friday, 6 November 2015, Dr Reddy's Lab announced that it has received a warning letter issued by the USFDA dated 5 November 2015 relating to the company's active pharmaceutical ingredients (API) manufacturing facilities at Srikakulam in Andhra Pradesh and Miryalaguda in Telangana, as well as oncology formulation manufacturing facility at Duvvada in Visakhapatnam, Andhra Pradesh. This action follows the earlier inspections of these sites by USFDA in November 2014, January 2015 and February 2015 respectively, Dr Reddy's Lab said in a statement.
Dr Reddy's CEO G V Prasad stated that the management takes quality and compliance matters seriously and is committed to fully comply with the cGMP-quality standards across all of the company's facilities. Prasad further said that the management will respond with a comprehensive plan to address these observations within the stipulated time-frame of 15 days. The management will continue to actively engage with the USFDA to resolve these issues and the management has also embarked on an initiative to revamp the company's quality systems and processes, as an organization-wide priority, Prasad said.
Dr Reddy's Laboratories' consolidated net profit rose 25.7% to Rs 721.89 crore on 11.2% growth in net sales to Rs 3988.96 crore in Q2 September 2015 over Q2 September 2014.
Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations.
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