Dr Reddy's Stock Falls Nearly 7% As FDA Issues Three Observations
The stock fell as much as 6.8% during the day on the NSE to Rs 5,370 apiece, the lowest since Nov. 7.
Shares of Dr Reddy's Laboratories Ltd. fell nearly 7% on Monday to the lowest in over a month after the U.S. Food and Drug Administration issued three observations for its research & development centre in Hyderabad.
After a pre-approval inspection, the FDA issued a Form 483 for the facility on Friday. The pharmaceutical company will address the observations within the timeline, according to an exchange filing.
Dr Reddy's stock fell as much as 6.8% during the day on the NSE to Rs 5,370 apiece, the lowest since Nov. 7. The shares were trading 5.29% lower at Rs 5,459.15 apiece compared to a 0.14% advance in the benchmark Nifty 50 as of 11:10 a.m.
It has risen 28.61% on a year-to-date basis. The total traded volume so far in the day stood at 9.3 times its 30-day average. The relative strength index was at 38.7.
Nineteen out of the 40 analysts tracking Dr Reddy's have a 'buy' rating on the stock, 11 recommend 'hold' and 10 suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 2.8%.
