Shares of Reddy’s Laboratories slumped over 14 per cent on Friday after the pharma company received a warning letter from the US Food and Drug Administration over inadequate quality control procedures at three manufacturing plants in India.
At 11.51 am, shares of the company were trading 13.70 per cent down at Rs 3,669.80. 3629.55. Later, the scrip closed 14.65 per cent down at Rs 3629.55.
The warning letter was issued by the FDA to Dr Reddy’s on Thursday for its Srikakulam, Miryalaguda and Duvvada drug manufacturing plants – all based in southern India.
The letter followed FDA inspections of these sites in November, January and February, and the company will respond to the agency in 15 days, Dr Reddy’s said in a statement on Friday.
“We will continue to actively engage with the agency to resolve these issues,” Dr Reddy’s Chief Executive GV Prasad said in a statement.
With agency inputs