Shares of Aurobindo Pharma jumped more than 15 per cent on Wednesday morning to trade at Rs 580 apiece on the back of US Food and Drug Administration granting EIR with VAl status, to the company’s Unit IV.
Shares of Aurobindo Pharma jumped more than 15 per cent on Wednesday morning to trade at Rs 580 apiece on the back of US Food and Drug Administration granting the Establishment Inspection Report (EIR) with Voluntary Action Initiated (VAl) status, to the company’s Unit IV, a general injectable formulation manufacturing facility in Telangana. The US drug administrator had inspected the manufacturing plant of Aurobindo Pharma in November 2019 and upon the completion of the same had issued 14 observations.
In a filing to the market regulator, Aurobindo Pharma said, “With regard to the USFDA inspection of Unit IV, a general injectable formulation manufacturing facility of the Company, we would like to inform you that the Company has received the Establishment Inspection Report (EIR) with Voluntary Action Initiated (VAl) status from USFDA.”
The share price of Aurobindo Pharma had dropped 30 per cent on-year basis till yesterday and after today’s surge in share price the fall has been reduced to 18 per cent from a year-ago period. Aurobindo Pharma has registered a net profit of Rs 705.3 crore in Q3FY20 as against Rs 712.2 crore in the corresponding previous period. Revenue from operations stood at Rs 5,895 crore with a growth of 11.9 per cent over the corresponding previous period, buoyed by formulation revenues which had a growth of 17.4 per cent to Rs 5,104.9 crore and accounted for 86.6 per cent of total revenues. While the US formulations revenues registered Rs 2,969.4 crore as against Rs 2,433.2 crore in Q3FY19, a growth of 22.0 per cent from a year ago.
In November, when the company received the observations, it had said that none of the observations were related to data integrity. Unit IV significantly contributes to the revenue and operating profit of the firm. Domestic benchmark indices rebounded today, S&P BSE Sensex was up 189.18 points or 0.46 per cent to trade at 41,083 points. Meanwhile, Nifty-50 gained 55.45 points or 0.46 per cent to trade above the 12,000 mark.