Aurobindo Pharma dips by 5.35 per cent post USFDA warning

Aurobindo Pharma has received a warning letter from USFDA for its Unit XI, a facility situated in Srikakulam District, Andhra Pradesh which manufactures Active Pharmaceutical Ingredient (API). Reacting to this development, the share price of the stock of the company fell by 5.35 per cent per share.

Aurobindo Pharma, at its facility in Srikakulam manufactures API which is a part of a drug that produces the necessary effects of the drug at the particularly affected area. Following up with an early inspection in February 2019 at the site, US Food and Drug Administration (USFDA) has issued a warning letter. The management of the company stated that current business activities at the site will not be hampered due to this new development and that it will resolve the issue with the regulator at the earliest. The company added that it will continue to maintain high standards and the highest quality of manufacturing across all its facilities, globally.

Previously, in May 2019, the company had received letters from USFDA classifying the inspection concluded at the company’s API facilities of Unit I and XI and intermediates facility of unit IX in February 2019 as Official Action Indicated (OAI).

Aurobindo Pharma Limited is a company headquartered in Hyderabad that manufactures generic pharmaceuticals and active pharmaceutical ingredients. Its areas of business include major therapeutic products such as antibiotics, cardiovascular products, antiretrovirals, gastroenterological, central nervous system products and anti-allergics. The company has a global presence in over 125 countries. A few of Aurobindo Pharma’s important partnerships include AstraZeneca and Pfizer.

Reacting to this development, the stock of the company on Friday was trading at Rs. 594.10 per share which is a decrease of 5.35 per cent or Rs. 33.55.The 52-week high is Rs. 838 and 52-week low is Rs. 566 on the BSE.