Shares of Dr Reddy’s slumped as much as 8.3 per cent as the USFDA has released the details of warning letter.
The stock marks its lowest intraday level since February 10.
According to analysts, the warning letter details are stringent in tone and scope.
Observations about an “uncontrolled custom QC lab previously unknown to the FDA’’ and “recurrent violations’’ are particularly worrisome as they go beyond procedural issues, says Citi.
The content of the warning letter for the three manufacturing sites for Dr Reddy’s is strongly worded, CLSA says.
Dr Reddy's response to the warning letter would be crucial, failing which there could be an adverse action (import alert) for these sites, it adds.
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