** Shares of Dr. Reddy's Laboratories REDY.NS rise 4.4% to 1,409.30 rupees

** The pharmaceuticals co said the U.S. Food & Drug Administration has issued a form-483 with seven observations to its biologics manufacturing facility in Bachupally, Hyderabad

** Brokerage Morgan Stanley says it does not expect a material impact on REDY's financials due to the observations

** "We do not see any material incremental delays in launches of key biosimilars," Morgan Stanley says

** Nomura says company's clarification that most observations relate to new block at the facility suggests that the long-standing contamination concerns related to the old block may have been substantially addressed

** Adds that company expressed confidence in resolving observations and remains optimistic of approval and launch in Q4 of FY27

** YTD, REDY stock up ~11%