Aarti Drugs slides on receiving USFDA warning letter

Aarti Drugs lost 6.82% to Rs 182.50 at 15:14 IST on BSE, after the company said it has recently received a warning letter from USFDA.

The announcement was made during market hours today, 26 September 2013.

Meanwhile, the BSE Sensex was up 39.87 points, or 0.2%, to 19,896.11.

On BSE, 17,140 shares were traded in the counter compared with the average daily volume of 2,680 shares in the past one quarter.

The stock hit a high of Rs 192.50 and a low of Rs 177 so far during the day. The stock had hit a 52-week high of Rs 262 on 23 July 2013 and a 52-week low of Rs 129.30 on 2 April 2013.

The small-cap stock had underperformed the market over the past one month till 25 September 2013, falling 1.09% compared with the Sensex's 7.22% gain. The scrip also underperformed the market in past one quarter, rising 3.02% as against Sensex's 6.59% rise.

The company has an equity capital of Rs 12.11 crore. Face value per share is Rs 10.

Aarti Drugs said that it has recently received a warning letter from US Food and Drug Administration (USFDA). The company said that its USFDA site at Tarapur was inspected by the US drug regulator in October 2012. Subsequently, the company submitted its response to USFDA. The company said that it has recently received a warning letter from USFDA pertaining to some of the company's responses to the USFDA inspection which need to be further corrected. The company further said that it has already submitted an initial response to USFDA in this regard.

Aarti Drugs said that it has hired a US based FDA consultant to further review the company's responses and send another detailed response by 15 October 2013. The company said that it is putting efforts to further enhance the quality systems to avoid such things in future. Aarti Drugs continues to cooperate with FDA to resolve the issues at the earliest, it said.

Aarti Drugs' net profit rose 33.3% to Rs 11.84 crore on 15.1% increase in net sales to Rs 218.59 crore in Q1 June 2013 over Q1 June 2012.

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