Shares of Dr. Reddy's dropped as much as 7.1 percent intraday, the most since October 2016, after a German regulator concluded the audit of its Visakhapatnam formulations facility with six major observations.
"The Regulatory Authority of Germany (Regierung von Oberbayern) concluded an audit of our formulations facility in Duvvada, Visakhapatnam with zero critical and six major observations," Dr Reddy's Labs said in a filing to the exchanges.
The products manufactured at the facility are currently not exported to the European union, the company said. The drugmaker will be submitting a corrective and preventive action plan (CAPA) to the authorities.
The auditor has cautioned that the facility will receive EU-Good Manufacturing Practices certification from the regulator up to November 2018 only when the regulator approves the CAPA.Dr. Reddy's Laboratories Filing
Shares of the drugmaker were down 3.3 percent to Rs 2,152 apiece as of 12:52 p.m.
Also Read: Dr. Reddy's Wins Rulings Over Three Patents For Suboxone Drug
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