Published on 9/03/2017 4:43:30 PM | Source: Angel Broking Pvt Ltd

We maintain our Neutral rating with Dr Reddy’s Laboratories Ltd By Ms. Sarabjit Kour Nangra - Angel Broking

Below is the views on Dr Reddy’s Laboratories Ltd By Ms. Sarabjit Kour Nangra,VP Research- IT, Angel Broking Pvt Ltd

Dr Reddy’s Laboratories got 13 observations from the USFDA for its Duvvada oncology formulation facility. The company didn’t specify the nature of these observations. The oncology formulation facility called Unit-7 is located in Visakhapatnam Special Economic Zone (VSEZ) at Duvvada. The site manufactures cytotoxic and hormonal injectables and is an important plant given Dr Reddy’s focus on complex generic filings. The Unit-7 had received a warning letter in November 2015 for batch failures, a probable microbial contamination and certain lapses quality control procedures. Following the letter, DRL completed remediation work and sought USFDA re-inspection. Since after the redemption work, also the company got observations, this will further delay the launch of the complex products of the company in the US markets. However, given the valuations we remain NEUTRAL on the stock. “


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