Shares of Dr Reddy's Lab today went down by 3.5 per cent, its second straight session of fall after the company received a warning letter from US drug regulator over quality issues at its two API manufacturing plants and a formulation unit in Andhra Pradesh and Telangana.
The stock ended with a loss of 3.44 per cent at Rs 3,504.60 on BSE. During the day, it tumbled 4.86 per cent to Rs 3,453.
At NSE, shares of the company dipped 3.56 per cent to settle at Rs 3,501.15.
The stock had on Friday also plummeted by nearly 15 per cent. The company's market valuation has tumbled by Rs 12,759.55 crore to Rs 59,784.45 crore in two days.
DRL on Friday said in a regulatory filing that it "has received a warning letter issued by the US FDA dated November 5, 2015 relating to its API manufacturing facilities at Srikakulam in Andhra Pradesh and Miryalaguda in Telangana, as well as Oncology formulation manufacturing facility at Duvvada, Visakhapatnam in Andhra Pradesh."
This action follows the earlier inspections of these sites by the agency, it added.
