Pharma stocks Dr Reddy's Lab and Lupin will be in focus today as both the companies will be reacting to observations received on their respective plants.
Lupin's Goa facility, which is under warning letter since November 2017 along with its Pithampur unit 2, has received two observations. The street would want to see what the nature of the two observations are as they could be enough to be quite severe for a company. At the same time, the fact that there are only two observations, the street could react positively.
Dr Reddy's Lab
The first observation can contain multiple observations. Hence, one needs to await clarity on that. The company's Bachupally plant, which is a formulation unit in Hyderabad, has received 11 observations. This comes as a negative news as earlier in April 2017 too, the plant had received 11 observations. Hence, the street is likely to be concerned.