Granules India dips over 10% as Telangana facility gets 11 observations

The stock dipped nearly 11% to Rs 97.80 on BSE in early morning trade on back of heavy volumes

Granules India has dipped nearly 11% to Rs 97.80 on BSE in early morning trade after the pharmaceutical company said it has received 11 observations from Infarmed (InstitutoNacional da Farmacia E Do Medicamento), the Portuguese drug regulator, for its facility located at Gagillapur, Telangana.

These observations were issued by Infarmed after it conducted a renewal inspection on the company's Gagillapur facility, which manufactures pharmaceutical formulation intermediates (PFIs) and finished dosages (FDs).

Granules India said the company has initiated necessary steps to address the observations of the inspection agency and will submit its response with a corrective and preventive action plan within the stipulated time.

The company will also be requesting the Infarmed for re-inspection of the Gagillapur facility at the earliest. The company is committed to comply with all the required regulatory requirements and follow the best practices of the industry. The company acknowledges the observations as area of continuous improvements,” said Granules India in a BSE filing on January 6, 2017.

At 09:26 am; the stock was down 10.5% at Rs 100.50 on the BSE. The trading volumes on the counter surged more than three-fold with a combined 2.37 million shares changed hands in first 11 minutes of trade on the BSE and NSE. It was trading close to its 52-week low of Rs 91.45 touched on November 9, 2016 in intra-day trade.