Shares in Dr Reddy's continued to decline in trade, as Nomura cut the target to Rs 4,346 from 4,919 rupees.

Dr Reddy's recently said that it had received a warning letter for its plant in Srikakulam, Andhra pradesh and Miryalaguda in Telangana.

The oncology formulation facility in Vishakapatanam also received a similar warning. Dr Reddy's said that the warning was received for three of its plants in South India. These facilities were inspected in the months of Nov, 2014, Dec 2014 and Jan 2015. The company in a release said that it would actively engage with the agency to resolve the issues. "We have embarked on an initiative to revamp our quality system and processes", the company had said.

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