Cadila gets 'USFDAed'!

Cadila Healthcare is currently the top loser on the BSE, tumbling down from yesterday’s close of Rs.385.15 to fall intra day to Rs.320, down over 16%.

The company informed the stock exchanges an hour ago that it has received a Warning Letter issued by the US FDA relating to its Moraiya formulation facility and Ahmedabad API facility (Zyfine).

The company has said that it is working hard to ensure that the commitments made to the US FDA are fully completed. The Company will continue to take all necessary steps to ensure that the US FDA is fully satisfied with our remediation of the above facilities. It has reiterated that its products in the market are safe and effective. It clarified that there were no products in the US market which use API of Zyfine facility.

The company will respond to US FDA to address the observations within the statutory time permitted in the letter.

This will not have much of a material impact on the company as no product from this plant goes to USA and with 20 plants spread all across, it will not affect the earnings. The psycholgical impact is though much higher and that is what is affecting the sentiments currently.