Dr Reddy's Laboratories fell 6% to Rs 2509.65 at 10:47 IST on BSE, recovering from the day's low amid high volatility.
Meanwhile, the S&P BSE Sensex was down 146.53 points, or 0.41% to 35,729.69.On the BSE, 2.52 lakh shares were traded in the counter so far compared with average daily volumes of 57,000 shares in the past two weeks.
The stock hit a day's high of Rs 2650.10 in early trade. It corrected as much as 22.63% to hit the day's low of Rs 2,065.30 in morning trade. The stock hit a 52-week high of Rs 2,875 on 4 February 2019. The stock hit a 52-week low of Rs 1,888 on 21 May 2018.
Dr Reddy's Laboratories informed on 8 February 2019 that US Food and Drug Administration (USFDA) completed the audit of its formulations manufacturing plant - 3 at Bachupally, Hyderabad. The company was issued a Form 483 with 11 observations. The company said it will address them comprehensively within the stipulated timeline.
A foreign brokerage and research firm reportedly retained underperform rating on Dr Reddy's stock with target at Rs 2,180 per share. It noted that the drug maker's formulations manufacturing plant - 3 at Bachupally, Hyderabad had been inspected by the USFDA. It has been issued a Form 483 with 11 observations, out of which four are repeat observations. The observations are around lack of thorough investigations, written records lacking details, employees not being trained and lack of infra. The clearance for Bachupally unit by USFDA could take time and believes that observations related to facility structure are negative, the research firm reportedly said in a note.
On a consolidated basis, net profit of Dr Reddy's Laboratories rose 65.28% to Rs 500.30 crore on 1.16% rise in net sales to Rs 3850 crore in Q3 December 2018 over Q3 December 2017.
Dr. Reddy's Laboratories is an integrated pharmaceutical company.
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