USFDA nod to Unit IV a breather for Aurobindo Pharma; share price up 20.4%

Analysts remain positive on Aurobindo's future prospects including the US despite the higher base

Aurobindo Pharma got a huge relief with its Unit IV, an injectables plant located in Hyderabad, receiving an establishment inspection report (EIR) from the US Food and Drug Administration (FDA). Investors, too, celebrated, with the company’s share price surging 20.4 per cent on Wednesday, leading to an increase of Rs 5,980 crore in its market value to Rs 35,288 crore on the BSE.

An EIR with voluntary action indicated status means the FDA is not likely to take any action, which could otherwise have hampered drug supplies to the US from this facility. The Street was surprised as analysts were factoring