Cipla down in the red

Cipla is a big disappointment on the bourses in the morning trades today. The stock opened almost 1% lower at Rs.1232.65 and went down to an intraday low at Rs.1226.40, down almost 1.5%.

The company announced yesterday after market hours that the Food and Drugs Administration (FDA) has ordered for suspension of FDA license issued to its manufacturing unit located at Patalganga (Unit II) for a period of 10 days in December 2023 for non-conformance of good manufacturing practices under Drugs and Cosmetics Act, 1940 and rules made thereunder.

Not in agreement with the FDA rulings, being the basis for the said suspension, the company is in the process of appealing the said order to the State Government.