Aurobindo Pharma receives USFDA observations, say reports; stock falls 5%

The stock dipped 5.4% to Rs 590 on the BSE after the media report suggested that the company received nine observations from the US drug regulator for one of its Hyderabad units.

Aurobindo Pharma has dipped 5.4% to Rs 590 on the BSE in early morning trade after the media reports suggested that the company has received nine observations from the US drug regulator for one of its Hyderabad units.

“The US Food and Drug Administration (USFDA) have issued Form 483 with 9 observations to Aurobindo Pharma Limited's unit 4 in Hyderabad, citing serious deficiencies in maintaining the manufacturing quality standards,” the Business Standard reported.

The FDA representatives had inspected the facility between February 12 and 20, 2018, it added. CLICK HERE TO READ FULL REPORT

The stock of pharmaceutical company had outperformed the market by gaining 9% from its recent low of Rs 571 on February 21, 2018, as compared to 1% rise in the S&P BSE Sensex till Thursday, February 28.

At 09:35 am; Aurobindo Pharma was trading at Rs 591, down 5%, against 0.79% decline in the benchmark index. A combined 2.51 million shares changed hands on the counter on the BSE and NSE so far.