Shares of Dr Reddy's Laboratories Wednesday ended over 2 per cent lower after the company said the US health regulator has issued eight observations after inspecting its formulations plant at Duvvada, Visakhapatnam.
The stock recovered most of its early losses and ended at Rs 2,540.70, a fall of 2.19 per cent on BSE. Intraday, it had tanked 6.64 per cent to Rs 2,425.
On NSE, shares of the company settled 2 per cent lower at Rs 2,542.
"The audit of our formulations manufacturing facility at Duvvada, Visakhapatnam, by the US Food and Drug Administration (USFDA), has been completed. We have been issued a Form 483 with eight observations, which we are addressing," the company said in a regulatory filing Tuesday.
As per USFDA, Form 483 is issued to a firm's management at the conclusion of an inspection when the investigator has observed any conditions that in its judgment may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related Acts.
It notifies the company's management of objectionable conditions.
(With inputs from agencies.)