Biocon hits three-month low on USFDA observation for Bengaluru facility

Biocon dipped 4% to Rs 1,004 on BSE after the company said it has received the US Food and Drug Administration (US FDA) observations on Form 483 for its Bengaluru facility.

The stock hit three-month low of Rs 984 on BSE in intra-day trade. It is trading at its lowest level since January 24, 2017. A combined 2.72 million shares changed hands on the counter on BSE and NSE till 02:08 pm.

"Observations on Form 483 is a standard outcome of any audit. The company has already responded to US FDA on all observations of the recent audit within stipulated timelines," Biocon spokesperson said in the statement.

"As a policy we do not comment on any schedule or outcomes of regulatory inspections, unless we believe that there is a material impact. Biocon has a good track record of inspections by the USFDA, European regulators and other regulators from developed and emerging markets," the company added.

Meanwhile, since April 25, post January-March quarter (Q4FY17) results, the stock underperformed the market by falling 14% as compared with 0.76% rise in the S&P BSE Sensex.

Biocon posted muted growth in Q4FY17 on the back of weak performance in small molecules and decline in Syngene sales. Total sales of the company during the quarter declined 2% year on year (Y-o-Y) at Rs 925 crore.

Q4 revenue reported a muted growth due to elongated approval timelines in some emerging markets, discontinuance of some in-licensed products and impact of the fire at Syngene, Biocon said in a press release.