Dr Reddy's Laboratories rallies over 6%, hits 52-week high on USFDA approval

NEW DELHI: Dr Reddy's Laboratories Ltd surged as much as 6.2 per cent in trade on Friday, after the U.S. Food and Drug Administration (FDA) said it has granted final approval to Indian drugmaker and U.S. firm Endo International Plc to make cheaper copies of Roche Holding AG's antiviral Valcyte.

At 01:40 p.m.; Dr Reddy's Laboratories was trading 5.5 per cent higher at Rs 3437.75. It hit a low of Rs 3250 and a 52-week high of Rs 3455 in trade today.

Ranbaxy recouped its intraday losses and was trading 1.2 per cent higher at Rs 661.20. It hit a low of Rs 623 and a high of Rs 664.25 in trade today.

The move comes after Ranbaxy Laboratories Ltd said on Thursday that FDA had stripped the company of its tentative approval to launch the first copy of the drug due to quality control issues at its manufacturing plants, Reuters reported.

There are no companies with such sales exclusivity for Valcyte generic anymore, FDA spokeswoman Sandy Walsh said in a statement mailed to Reuters.

Ranbaxy, whose all India-based manufacturing plants have been banned by the FDA from exporting to the United States, also lost its rights to a six-months market exlusivity for Valcyte generic.