Zeldes Haeggquist & Eck, LLP, a shareholder and consumer rights litigation firm, has commenced an investigation into Dr. Reddy’s Laboratories Ltd. to determine whether Dr. Reddy’s and its Officers and Directors have violated the federal securities laws under the Securities Exchange Act of 1934. Shareholders who have suffered losses on their investment in Dr. Reddy’s shares are encouraged to contact Zeldes Haeggquist & Eck to discuss their legal rights.
Dr. Reddy’s is an Indian multinational pharmaceutical company based in Hyderabad, Telangana, India. Dr. Reddy’s has operations in 26 countries and manufactures and markets a wide range of pharmaceuticals worldwide.
On November 5, 2015, the Director of the FDA Center for Drug Evaluation and Research sent a warning letter to Dr. Reddy’s relating to inadequate quality controls at three key Indian facilities manufacturing raw pharmaceutical materials and oncology medicines. The FDA stated that Dr. Reddy’s may not receive U.S. approvals for any new applications or supplements listing Dr. Reddy’s as a drug product or API manufacturer, and that FDA may refuse admission into the U.S. of drugs manufactured at these three facilities until the problems were fixed.
The FDA also required Dr. Reddy’s, within 15 working days of receipt of the warning letter, to notify the FDA in writing of specific steps taken to correct their violations and deviations.
On this news, the one-day stock drop was 18 percent, from $65.25 to $53.50, and continued to fall over the next three trading days for a total loss of 25 percent.