Aurobindo Pharma gains 15% as USFDA grants VAI to Unit IV facility

Shares of Aurobindo Pharma surged 15 per cent to Rs 621.60 on the BSE in an otherwise weak market on Tuesday after US drug regulator USFDA classified the company's Unit IV of Hyderabad plant as VAI (voluntary action indicated).

At 10:00 am, the stock was trading 12 per cent higher at Rs 605, as compared to 2.6 per cent decline in the benchmark S&P BSE Sensex. A combined 6.8 million shares have changed hands on the counter on the NSE and BSE. The pharma stock is trading on future & option (F&O) segment, which has no circuit limits. The S&P BSE Healthcare index, the top sectoral gainer, was up 2.13 per cent at 10:30 AM as compared to 2.7 per cent fall in the S&P BSE Sensex.

“With regard to the inspection of Unit IV, an injectable manufacturing formulation facility of the Company, conducted between November 4 and November 13, 2019, we would like to inform that United States Food and Drug Administration (USFDA) has determined that the inspection classification of this facility is Voluntary Action Indicated (VAI),” Aurobindo Pharma said in an exchange filing. READ MORE

The facility remains important as it contributes more than 10 per cent to Aurobindo’s overall sales and about 20 per cent of the US sales (a majority of injectables supplied to the US market). Further, there were about 46 pending new drug applications (about 30 per cent of 154 pending) and 50-60 per cent of pending injectable filings from this facility.