Dr. Reddy's gets EIR for Vizag Plant: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

"Dr Reddy's Laboratories (DRL) today received an establishment inspection report (EIR) from the US health regulator for its formulation manufacturing facility at Duvvada in Visakhapatnam. The company, however, said that the US Food and Drug Administration (USFDA) have not closed the inspection & the manufacturing site's status remains unchanged.

The USFDA has released the EIR in order to be transparent about its regulatory process. DRL plans to request a re-inspection in 2018 after further discussion on scheduling with the US regulator for its Duvvada facility. As far as financials are concerned, the event would not change the status of the company, as EIR is just an observation note and doesn't equate to the company getting a clean chit from USFDA.

EIR is the name given by the USFDA for an entire narration of what the FDA investigator / inspector did during the time spent at the establishment (facility), from the stage of introductions till the handover of the inspectional observations (termed as Form FDA 483). The EIR is expected to be a compilation of factual information. Thus, we maintain reduce recommendation with a Price Target of INR 2,040."

Shares of DR.REDDY'S LABORATORIES LTD. was last trading in BSE at Rs.2298.7 as compared to the previous close of Rs. 2311.65. The total number of shares traded during the day was 29923 in over 1398 trades.

The stock hit an intraday high of Rs. 2324.05 and intraday low of 2290. The net turnover during the day was Rs. 69111157.

Source : Equity Bulls

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