Aurobindo Pharma tumbles after USFDA warning for Srikakulam plant

Aurobindo Pharma was down 5.96% to Rs 589.55 at 10:10 IST on the BSE after the company said it received a warning letter from the US drug regulator for Srikakulam plant.

The announcement was made during market hours today, 21 June 2019.

Meanwhile, the S&P BSE Sensex was down by 187.09 points, or 0.47% to 39,414.54.

On the BSE, 2.58 lakh shares were traded in the counter so far compared with average daily volumes of 1.20 lakh shares in the past two weeks. The stock had hit a high of Rs 627 and a low of Rs 578.75 so far during the day. It hit a 52-week high of Rs 838 on 30 April 2019 and a 52-week low of Rs 566 on 19 July 2018.

Aurobindo Pharma said it has received a warning letter dated 20 June 2019 from US Food and Drug Administration (USFDA) relating to unit XI, Active Pharmaceutical Ingredient (API) manufacturing facility situated at Srikakulam district in Andhra Pradesh.

This action follows the earlier inspection of the site by the USFDA in February 2019. The company said that the existing business from this facility will not be impacted. The company will be engaging with the regulator and is fully committed in resolving this issue at the earliest. The company is also committed to maintaining the highest quality manufacturing standards at all of its facilities across the globe.

On a consolidated basis, Aurobindo Pharma's net profit rose 15.7% to Rs 611.32 crore on a 30.4% rise in the net sales to Rs 5201.98 crore in Q4 March 2019 over Q4 March 2018.

Aurobindo Pharma is a pharmaceutical company.

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