Dr Reddy’s US arm faces $32,350 IRS penalty over fiscal year misclassification

Dr Reddy’s Laboratories said its step-down wholly owned subsidiary, Dr Reddy’s Laboratories, Inc. (DRL Inc), has received a penalty of $32,350.20 from the US Internal Revenue Service (IRS) over misclassification of the fiscal year reference at the time of tax payment.

DRL Inc received the final transcript dated September 25, 2026, from the US Department of the Treasury, Internal Revenue Service, Cincinnati, Ohio, on October 2, 2026.

According to the company, the penalty relates to the misclassification of the fiscal year reference at the time of tax payment.

Dr Reddy’s said that, based on its evaluation, there is no material impact on the company’s financials, operations or other activities.

Earlier on Sep 11, in a separate development, drugmaker had said the United States Food and Drug Administration (USFDA) completed a records assessment at its active pharmaceutical ingredient (API) manufacturing facility in Mexico, with two observations issued at the conclusion of the assessment.

The assessment was conducted under Section 704(a)(4) of the Federal Food, Drug, and Cosmetic Act at Industrias Químicas Falcón de México, S.A. de C.V., also known as Dr Reddy’s Mexico, located in Jiutepec, Morelos, Mexico.

The records assessment was conducted from July 17 to September 8, 2026. At the conclusion of the assessment, the USFDA issued Form FDA 2953 containing two observations. Dr Reddy’s said it will respond to the observations within the stipulated timeline.Dr Reddy’s Laboratories Ltd shares closed 2.51% lower at ₹1,202 on October 1, 2026, at NSE.

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