Regulatory overhang may dent Aurobindo Pharma earnings estimate by 15-20%

The stock tanked to its five-year low before closing 8.7 per cent lower on Thursday

Street sentiment regarding Aurobindo Pharma — already weak on account of regulatory observations pertaining to its other facilities — has taken a further hit following the USFDA’s 14 observations to Unit IV, an injectables producing facility. 

The stock, which had almost halved from the Rs 800-level between April and November 13, slumped to its five-year low before closing 8.7 per cent down on Thursday. This was despite the company putting up a decent showing in the September quarter (Q2). 

Analysts say the inspections and observations surprised them, as they were conducted by the USFDA within seven months of the last