Dr Reddy's Labs shares hit 52-week high after US regulator completes inspection at drug maker's Srikakulam facility

Dr Reddy's Laboratories (DRL) shares touched a 52-week high on Thursday after the US Food and Drug Administration (FDA) completed an inspection at the Hyderabad-based drug maker's active pharmaceutical ingredient (API) manufacturing facility in Srikakulam, Andhra Pradesh without objections.

Dr Reddy's shares gained by Rs 148.6 or 2.8 per cent at the strongest level of the day to Rs 5,370.2 apiece on BSE after the news, surpassing an earlier 52-week high of Rs 5,272.4 apiece hit on July 7. 

At 11:50 am, the Dr Reddy's stock was up 2.3 per cent at Rs 5,342.9 apiece on BSE.

The US drug regulator conducted the pre-approval and routine good manufacturing practice (GMP) inspection at the facility from July 10 to July 19, according to a regulatory filing.  

"The inspection closed with zero observations and a classification of No Action Indicated (NAI)," Dr Reddy's said. 

Dr Reddy's Laboratories is scheduled to report its financial results for the April-June period on July 26. 

For the quarter ended March 31, 2023, Dr Reddy's Laboratories reported a net profit of Rs 960 crore over revenue of Rs 6,315 crore. The company reported Rs 1,534 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) and its margin stood at 24.3 per cent. 

Dr Reddy's sales in the US increased 27 per cent on a year-on-year basis, according to a statement. Its India sales grew 32 per cent. 

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