Aurobindo Pharma Tanks 8% On USFDA Warning

Aurobindo Pharma shares fell  as much as 8 percent intraday on June 21 after receiving a warning letter from the US health regulator for Srikakulam unit.

The stock lost 24 percent in last three months. It was quoting at Rs 590.70, down Rs 36.20, or 5.77 percent on the BSE at 0942 hours.

The pharma major informed exchanges that it has received a warning letter from US Food and Drug Administration relating to Unit XI, API manufacturing facility situated at Srikakulam District, Andhra Pradesh.

This action follows the earlier inspection of the site by the USFDA agency in February 2019, the company said.

Aurobindo believes the existing business from this facility will not be impacted. “We will be engaging with the regulator and are fully committed to resolving this issue at the earliest,” the company said in exchange filings.

The company reiterated its commitment to maintaining the highest quality manufacturing standards at all of its facilities across the globe.

Earlier on May 17, it had received letters from the USFDA classifying the inspections concluded at API facilities of unit XI along with unit I and intermediates facility of unit IX in February 2019 as Official Action Indicated (OAI). – Moneycontrol