Aurobindo Pharma slides after clarification

Aurobindo Pharma fell 3.30% to Rs 603.50 at 14:12 IST on BSE after the company clarified that its unit 4 in Hyderabad was issued 9 observations after USFDA inspection.

The company issued the clarification during trading hours today, 5 March 2018.

Meanwhile, the S&P BSE Sensex was down 251.40 points, or 0.74% to 33,795.54.

On the BSE, 3.71 lakh shares were traded in the counter so far compared with average daily volumes of 2.31 lakh shares in the past two weeks. The stock had hit a high of Rs 610.05 and a low of Rs 590 so far during the day. The stock hit a 52-week high of Rs 808.95 on 7 November 2017. The stock hit a 52-week low of Rs 504 on 29 May 2017.

Aurobindo Pharma clarified that the United States Food and Drug Administration (USFDA) conducted an inspection at the company's unit IV, a formulation manufacturing facility located at Pashamylaram, Hyderabad, from 12 February 2018 to 20 February 2018.

At the end of the scheduled inspection, the unit was issued a Form 483 with 9 observations. The company said that none of the observations are related to data integrity or were repetitive in nature. The firm is in the midst of providing a comprehensive response to the observations and would be replying to the USFDA within 15 working days from the date of closure (20 February 2018) of audit.

Aurobindo Pharma's consolidated net profit rose 2.8% to Rs 595.01 crore on 11% growth in net sales to Rs 4268.99 crore in Q3 December 2017 over Q3 December 2016.

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients.

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