Duvvada resolution is expected to give a huge fillip to the company, as around 20% of its future ANDA (abbreviated new drug applications) filings were made from this facility.
India's fifth largest drugmaker Dr Reddy'shad a roller coaster ride with shares falling by about 23 percent on February 15, as the stock took a pounding on account of repeat observations from USFDA for its Bachupally formulation plant in Hyderabad.
The stock recovered by the end of the trading session, paring its losses to just 4.21 percent to Rs 2,556.90 on BSE at the close of trading.
Moneycontrol reported that while the observations are procedural in nature, some of them are repetitive, which means they may take more time to resolve.
The vagaries of USFDA inspections have become part and parcel of the pharma industry, but the steep fall has unnerved investors and raised questions over the company's compliance track record.
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