Aurobindo Pharma share down 4% as arm gets 10 observations from USFDA

Aurobindo Pharma's subsidiary Apitoria Pharma has received 10 observations from the USFDA for its API manufacturing facility in Telangana

Aurobindo Pharma share declined 4.3 per cent today, logging an intraday low of Rs 1,443.5 per share on the BSE. The scrip dropped after the US Food and Drugs Administration (USFDA) inspected Apitoria Pharma, a subsidiary of Aurobindo Pharma's Active Pharmaceutical Ingredient (API) manufacturing facility in Telangana.

"The USFDA inspected Unit-II, an API manufacturing facility, of Apitoria Pharma Private Limited, a wholly owned subsidiary of the company, situated at Gaddapotharam Village IDA, Jinnaram Mandal, Sanga Reddy District, Telangana. The inspection closed with 10 observations," Aurobindo Pharma said in its stock exchange filing.

The observations, which were conducted from September 23 to 27, 2024, were procedural in nature and will be responded to within the stipulated time, Aurobindo Pharma said.

At around 1:41 PM, Aurobindo Pharma share price was down 1.36 per cent at Rs 1,489.25 per share on the BSE. By comparison, the BSE Sensex traded 1.34 per cent lower at 84,427.54 around the same time.

Aurobindo Pharma Q1 results

In the quarter that ended June 30, 2024, Aurobindo Pharma's consolidated net profit increased 61 per cent year on year (Y-o-Y) to Rs 919 crore aided by strong sales across markets. The Hyderabad-based drug maker reported a net profit of Rs 571 crore in the April-June quarter of last fiscal.

The revenue from operations soared to Rs 7,567 crore in the quarter under review in comparison to Rs 6,851 crore a year-ago period.

"We are pleased with our continued strong performance this quarter, with a significant top-line growth across all our business segments," Aurobindo Pharma Vice-Chairman and Managing Director K Nithyananda Reddy stated.

The profitability was sustained by improved gross margins and operational efficiencies, while ramping up our recently commercialised plants, Reddy added.

Reddy is confident and believes the company has the ability to achieve growth targets for FY25.

In the past one year, Aurobindo Pharma shares have gained 66.2 per cent against BSE Sensex's rise of 30 per cent.