Granules India tumbles on "observations"

Granules India announced on Friday after market closure that Infarmed, the drug regulator of Portugal has given it 11 observations. This is for its facility in Telangana and was issued after Infarmed conducted a renewal inspection on the company's Gagillapur facility. This factory makes pharmaceutical formulation intermediaries and finished dosages.

The company has stated in the Press Release issued to the stock exchanges that it has initiated necessary and preventive action plan within the stipulated time. It will also be requesting the Infarmed for re-inspection of the Gagillapur facility at the earliest.

The market is wary of any observation given by any regulator to any pharma company; there are just too many such incidences which are occurring. Obviously, the stock price has tanked today, going down almost 13% to Rs.97.80. Its 52-week low is at Rs.91.45.