Dr Reddy’s share falls: Shares of pharmaceutical company Dr Reddy’s Laboratories slipped as much as 2.64 per cent to hit an intraday low of Rs 6,830.15 per share on Monday, September 2, 2024.
The fall in the share price of Dr Reddy’s came after National Medical Products Administration (NMPA), China conducted a remote inspection of the Company’s formulations manufacturing facility (FTO-3) for Atomoxetine Hydrochloride Capsules, and concluded that the production quality management of Atomoxetine Hydrochloride Capsules does not meet the requirements of China’s “Good Manufacturing Practice for Drugs (Revised in 2010).”
Atomoxetine is used for treating attention deficit hyperactivity disorder (ADHD) in adults and children over six years.
Consequently, the NMPA has suspended the import, sale, and use of the Company’s Atomoxetine Hydrochloride Capsules effective August 30, 2024.
Further, the National Drug Joint Procurement Office, China (NDJPO), having considered the said order of the NMPA, has decided to cancel Dr Reddy’s Laboratories Ltd’s Atomoxetine Hydrochloride Capsules “won” status and list the company on the “Violation List”, suspending the company’s eligibility to participate in national centralised drug procurement activities from August 30, 2024 to February 28, 2026.
Both NMPA and NDJPO orders are dated August 30, 2024, the company said.
The company is in the process of ascertaining the monetary impact of the said orders, it added.
Dr Reddy’s Laboratories is a prominent Indian pharmaceutical firm established in 1984 by Kallam Anji Reddy. The company specialises in a broad spectrum of products, including generics, biosimilars, and differentiated formulations. Dr. Reddy’s Laboratories is involved in the production of active pharmaceutical ingredients (APIs), custom pharmaceutical services (CPS), and a diverse array of pharmaceuticals.
The company operates nine research and development (R&D) centres across India, the United Kingdom, the Netherlands, and Malaysia. The company maintains a global manufacturing footprint with 23 facilities worldwide including nine dedicated to API production and 14 focused on formulating finished products. Its international manufacturing presence includes locations in Mexico, the United Kingdom, the USA, and China.
The market capitalisation of Dr Reddy’s is Rs 1,14,003.08 crore, according to Bombay Stock Exchange (BSE). The company falls under the BSE100 category.
The 52-week high of the stock is Rs 7,101 per share while its 52-week low is Rs 5,212.10 per share.
At 1:48 PM, stock of Dr Reddy’s were trading 2.80 per cent lower at Rs 6,832.60 per share. In comparison, BSE Sensex was trading 0.12 per cent higher at 82,465.22 levels.
First Published: Sep 02 2024 | 1:56 PM IST
