Dr Reddy's drops 4% as Duvvada facility receives EIR

NEW DELHI: Shares of Dr Reddy's Laboratories fell over 4 per cent in Wednesday's trade amid reports that an establishment inspection report (EIR) has been issued to the company's Duvvada facility, citing some issues.

Following the report, the stock fell 4.5 per cent to hit a low of Rs 2,299 on BSE. The exchange has sought clarification from the drug maker regarding the news. The reply is awaited.

On the BSE, 57,000 shares were traded on the counter so far compared with average daily volumes of 40,000 shares in the two weeks.

The media report suggested that that Duvvada facility status continues to be classified as official action initiated (OAI), which suggests regulatory or admin sanctions by the drug regulator have been initiated.

The drug maqker reported 1.1 per cent YoY drop in consolidated net profit at Rs 305.40 crore in teh September quarter, on 1.1 per cent YoY decline in consolidated net sales at Rs 3,546 crore.