Aurobindo Pharma in red
Aurobindo Pharma is among the top losers on the BSE currently, going down almost 4% to Rs.588, which is just Rs.20 away from its 52-week low of Rs.566.
The woe of the company with the FDA is getting the market worried. There is no new “observation” but analysts putting put reports on its future is impacting the stock price.
The company, on 20th June received a warning letter from US health regulator for its Unit XI, API (Active Pharmaceutical Ingredients) manufacturing facility in Srikakulam, Andhra Pradesh.
Prior to that in May, three of its API manufacturing units were classified in the official action indicated category, implying regulatory and/or administrative actions will be recommended. Two of its formulations unit also have received observations.
The concern that is this will delay getting approvals – some 28 products manufactured in this plant are waiting for the nod. So existing business will not be impacted but new product pipeline will remain choked till the plant is cleared.
The worry is that a pattern is emerging wherein the other API plants too might get a warning letter.