Aurobindo Pharma shares slump on USFDA warning letter to Hyderabad unit

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SME Times News Bureau | 14 Jan, 2022
Shares of pharmaceutical firm Aurobindo Pharma declined nearly 5 per cent on Friday after global watchdog USFDA (United States Food and Drug Administration) sent a warning letter to the company in connection to its unit in Hyderabad.

According to reports, the USFDA through the letter warned the firm for poor manufacturing practices, problems with claims for what a product can do, or incorrect directions for usage.

Later in the day, the shares of the company, however, pared some of its intraday losses and settled 3 per cent down at Rs 696.

The pharmaceutical company, through a regulatory filing, confirmed that it received the letter from the USFDA.

"This action follows the recent inspection of the Unit by the USFDA in August 2021. The Company believes that this will not impact the existing business from this facility. The Company will be engaging with the regulator and is fully committed in resolving this issue at the earliest," it said in the filing on Friday.

"The Company is also committed to maintaining the highest quality manufacturing standards at all of its facilities across the globe," it added.

Aurobindo Pharma exports its products to over 155 countries across the globe with more than 90 per cent of its revenues derived from international operations.