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Goa facility issue worsens Cipla's growth worries; stock falls over 3%

India business has been soft given the realignment of the sales channel

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Ujjval Jauhari
Cipla closed 3.28 per cent lower on Monday, hitting its 52-week low in the process, on news that its Goa facility received 12 observations from the US drug regulator after inspections. The company, however, clarified that none of the observations was related to data integrity. Nevertheless, the Street will remain cautious, say analysts, and the overhang will continue until the issues are resolved. 

Sales growth of Indian pharma companies in the US has been under pressure due to pricing issues. The regulatory overhang adds to the problem of price erosion, and delays in the launch in of new products. Though

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First Published: Sep 30 2019 | 10:40 PM IST

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