A dose of concern for DRL: Sinks 5% on USFDA 'imminent' warning

Sell-off in response to a brokerage report, raising concerns about a warning on DRL's FTO 3

Shares of Dr Reddy’s Laboratories (DRL) fell 5 per cent to Rs 5,473 on the BSE in Monday’s intraday trade, nearly wiping out the past month’s entire gain of 6 per cent.

The sell-off was a reaction to a report by Antique Stock Broking, which flagged an ‘imminent’ warning letter from the US drug regulator on DRL’s Formulation Technical Operation Unit 3 in Bachupally suburb (in the Medchal-Malkajgiri district) of Telangana.

The research and broking house has maintained its ‘sell’ rating on the stock in its report on Monday with a target price of Rs 4,766, a downside of 13