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Shares of pharmaceutical firm Dr. Reddy’s Laboratories Ltd (DRL) fell 6% today, trading at 5,414.90, down 349 points from its previous close. The drop came after analysts warned that DRL’s Bachupally manufacturing facility may receive a regulatory letter.
Currently trading at 5,414.90 per share at market close, the DRL stock faced selling pressure throughout the morning on the back of analyst commentary predicting a warning letter or import ban from the US FDA for the Bachupally unit due to past scrutiny.
While Dr. Reddy’s has made no statements confirming any letter from regulators on Bachupally, analyst expectations for such punitive measures drove the stock’s losing streak amid broader uncertainty regarding DRL’s quality controls and run-ins with oversight authorities.