Shares of Dr Reddy's Laboratories slipped 2 percent intraday as the brokerage house Citi has maintained neutral rating on the stock.
On November 21 the company has received the establishment inspection (EIR) report from USFDA for formulations manufacturing facility at Duvvada, Vishakhapatnam.
FDA has explained that the inspection has not closed and site’s status remains unchanged, but FDA has released the EIR in order to be transparent about the regulatory process, as per company release.
The company is planning to request a re-inspection in 2018 after further discussion on scheduling with FDA.
The brokerage house doesn't read much into the EIR issued to the Duvvada unit at Vizag.
It believes that there is not much to conclude from EIR & it appears to be a status update.
According to the firm, the company has one of the better US pipelines among the Indian companies, but the near-term picture remains hazy, given the pricing pressure in the US.
However, it believes that potential big gun launches & efforts on cost control would limit the downside on the stock.
At 10:45 hrs Dr Reddy’s Laboratories was quoting at Rs 2,357.85, down Rs 33, or 1.38 percent on the BSE.
Posted by Rakesh Patil
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