Cipla share price plunges nearly 6 pct after USFDA issues warning letter for Goa facility

Shares of drug firm Cipla tumbled nearly 6 per cent on Wednesday after the US health regulator issued a warning letter for its Goa manufacturing facility.

The shares plunged as much as 5.72 per cent to a low of Rs 401 per unit on the BSE. Later, it was trading 1.49 per lower at Rs 419 per unit.

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The shares of the company have been falling for the last three sessions. It has declined nearly 9 per cent since Thursday taking into account the today's low.

On the NSE, it slumped 4.69 per cent to trade at Rs 405.80. It was quoting at Rs 419.50 apiece, down 1.48 per cent at 1120 hours.

In terms of volume, the NSE saw an exchange of more than 40 lakh shares and the BSE witnessed a trade of 80,000 units till the mid-session.

The company, earlier in the day, said it had received a warning letter from the United States Food and Drug Administration (USFDA) for the Goa manufacturing facility.

For the Goa manufacturing facility inspection, conducted from 16-27 September 2019, the company has received a warning letter from USFDA, it said in a regulatory filing.

Aurobindo Pharma gets EIR with VAI status from USFDA for Hyderabad facility

Aurobindo Pharma Ltd on Wednesday said that it has received an establishment inspection report from the US health regulator with Voluntary Action Initiated (VAl) status for its Unit VIII manufacturing facility in Hyderabad.

"Further to our intimation dated November 6, 2019 with regard to the USFDA inspection of Unit VIII, API manufacturing facility at Gaddapotharam, Hyderabad, we would like to inform that the company has received the Establishment Inspection Report (EIR) with VAl status from the USFDA," the drug firm said in a filing to BSE.

According to the US health regulator, a VAI classification "means objectionable conditions or practices were found but the agency is not prepared to take or recommend any administrative or regulatory action".

USFDA issues an EIR to the company when an inspection is satisfactorily closed.

Shares of Aurobindo Pharma were trading at Rs 508.50 a piece on BSE, up 0.87 per cent from the previous close.