Vista Pharma locked on 5% UC

Vista Pharma has been locked on the 5% UC almost all days through this entire week. Even today, it hit the 5% UC at Rs.41 the moment it opened for trading. The reason for this euphoria is that the company's formulation facility situated at Telangana has received Establishment Inspection Report (EIR) from USFDA, thereby confirming the closure of the inspection. The receipt of EIR indicates the successful closure of the inspection points raised earlier. This is the same facility, which the FDA, two months ago had issued observations as it had found significant violations of current good manufacturing practice regulations for finished drugs. The observation included failure to clean, maintain equipment & utensils at appropriate intervals. The FDA stated then the company also failed to establish procedures to assure drug strength, identity & quality. Post this, the company seems to have corrected the observations made and went on to receive this EIR.