Dr Reddy’s Laboratories saw its shares dip after the National Medical Products Administration of China (NMPA) suspended the import, sale, and use of the company’s Atomoxetine Hydrochloride capsules. By 10:30 AM, the pharma giant’s stock had fallen 1.4 percent to Rs 6,937 on the NSE.
The suspension follows a remote inspection conducted by NMPA at Dr Reddy’s manufacturing facility for Atomoxetine Hydrochloride capsules used to treat attention deficit hyperactivity disorder in adults and paediatric patients 6 years of age and older. According to the Chinese regulator, production quality management for those capsules was not in conformation with “Good Manufacturing Practice for Drugs (Revised in 2010)” of China. Import, sales, and use of the capsules have therefore been suspended with effect from August 30, 2024.
The China National Drug Joint Procurement Office also withdrew the “won” status of the Atomoxetine Hydrochloride capsules from the firm Dr Reddy’s Laboratories, based on an NMPA decision, and put it on the “Violation List.” This means that Dr Reddy’s is disqualified for participation in national centralized drug procurement activities of the country from August 30, 2024, to February 28, 2026.
The company also received a tax demand of Rs 13.54 crore from the GST Authority for the financial years 2019-20 and 2020-21 on the ground that the company had excessively availed ITC, according to a PTI report. An appeal to the said order before the appellate authority is being considered by Dr Reddy’s.
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Source: Moneycontrol
News Desk
