Dr. Reddy’s Says It Faces U.S. Scrutiny Over Packaging Rules
- Stock falls more than 2 percent after commission sends letter
- Company says it complied with rules and will defend itself
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Dr. Reddy’s Laboratories Ltd. said a U.S. consumer safety watchdog has asked the nation’s Department of Justice to take action against India’s second-largest drugmaker for its alleged failure to comply with packaging and reporting rules.
The company’s shares fell 1.9 percent to 3,079.05 rupees at 12:12 p.m. in Mumbai, the most since May 6, after dropping as much as 2.4 percent earlier. The company has complied with all legal requirements and will defend itself against the allegations, according to an e-mailed statement from the Hyderabad-based company.