Dr. Reddy's Shares Dip as China Suspends Atomoxetine Hydrochloride Sales

2 Sep 2024 , 03:42 PM

On Monday, September 2, Dr. Reddy’s Laboratories Ltd. saw its share prices fall following an import, sale, and use suspension imposed by the National Medical Products Administration (NMPA) in China.

At the time of writing on September 02, 2024 at 3:40 pm, shares of Dr. Reddy’s Laboratories Ltd closed at ₹6868 which is a 2.32% dip than the previous close. Dr. Reddy’s Laboratories Ltd stock has gained a total of 21% in the last one year, and almost 17% gain since the beginning of the year.

The suspension affects Dr. Reddy’s Laboratories Atomoxetine Hydrochloride Capsules, which are used to treat attention deficit hyperactivity disorder (ADHD) in both adults and children.

The NMPA recently conducted a remote inspection of Dr. Reddy’s formulation manufacturing facility (FTO-3) and determined that the production standards for Atomoxetine Hydrochloride Capsules did not comply with China’s Good Manufacturing Practices for Drugs.

Consequently, the National Drug Joint Procurement Office (NDJPO) has revoked Dr. Reddy’s “won” status for Atomoxetine Hydrochloride, added the company to its Violation list, and prohibited Dr. Reddy’s from participating in central drug procurement activities until February 28, 2026.

Both the NMPA and NDJPO orders were issued on August 30, 2024. Dr. Reddy’s Laboratories has announced that it is currently assessing the financial impact of these regulatory actions.