Shares of Dr Reddy's Laboratories Ltd. fell over 6% on Thursday with the stock trading at Rs 1,261 apiece. The shares dropped after the company said a certain batch of the semaglutide were found to be out of specification due to an issue associated with the active pharmaceutical ingredient (API) used in the product.
The company in its regulatory filing said that they are investigating the root cause and will be taking appropriate measures to ensure product qualiy adding that until the issue is resolved, commercial supplies of the product will be delayed for a certain period of time.
The pharmaceutical major further said that there is no impact on patient safety or on the product's existing global regulatory filings. "We remain committed to ensuring reliable global supplies of this important metabolic therapy," it added.
Furthermore, Dr Reddy's said that the management of the company will host a conference call to discuss the topic and answer any questions from the participants.
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Dr Reddy's Laboratories Ltd. Share Price Today
Dr Reddy's Laboratories Ltd. Share Price Today
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The scrip fell as much as 6.52% to Rs 1,261 apiece intraday on Thursday at 11:14 am. This compares to a 0.75% rise in the NSE Nifty 50 Index. It has risen 1.56% in the last 12 months and 1.42% year-to-date. Total traded volume so far in the day stood at 1.75 times its 30-day average. The relative strength index was at 63.12.
Out of 41 analysts tracking the company, 19 maintain a 'buy' rating, 10 maintain a "hold", and 12 maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 1350.16 implies an upside of 2%
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