Dr Reddy's cracks 6% as German regulator issues six major observations

NEW DELHI Shares of Dr Reddy's Laboratories cracked over 6 per cent in Friday's trade after the drugmaker informed bourses that the company has received six major observations on its formulating manufacturing facility in Visakhapatnam.

The stock recovered during the day to close at Rs 2,158.80, down 2.93 per cent on BSE. It touched an intraday high and low of Rs 2,235 and Rs 2,069.10.

"The regulatory authority of Germany, concluded an audit of our formulations manufacturing facility in Duvvada, Visakhapatnam, with zero critical and six major observations. Products manufactured at the facility are not currently exported to the EU," the company said.

The company said that the auditor has cautioned the company that it will receive EU-GMP certification form the regulator by November 2018 only when the regulator approves the corrective and preventive action plan (CAPA) of the company.