Opening almost 4.5% lower at Rs.5519, Dr.Reddy’s Lab slipped down further by 7% to hit an intraday low at Rs.5371.75. It is currently the top loser on the BSE.
The stock slipped down after the US Food and Drug Administration (USFDA) issued three observations for the company's Telangana plant.
The US FDA had inspected the Bachupally unit between October 19 and October 27, 2023.
The observations range from unclean types of equipment and utensils to failure to explain any unexplained discrepancy.
Dr Reddy's Bachupally unit contributes to 30 percent of its overall revenue from the US and manufactures four out of the top 10 products like Ciprodex, Nexium, Valcyote and Toprol generic.