Cadila Healthcare shares slump 15% on warning letter from USFDA

By: | Updated: December 31, 2015 4:46 PM

Cadila Healthcare shares fall over 15 per cent in the morning trade on Thursday after it informed stock exchanges that it has received a warning letter from the US FDA

Cadila healthcare shares, cadila stocks, bse sensex, USFDA warningCadila Healthcare shares fell over 15 per cent in the morning trade on Thursday after the pharma company informed stock exchanges that it has received a warning letter from the US FDA (Photo: PTI)

Cadila Healthcare shares fell over 15 per cent in the morning trade on Thursday after the pharma company informed stock exchanges that it has received a warning letter from the US FDA relating to its Moraiya formulation facility and Ahmedabad API facility (Zyfine).

At 10.35 am, shares of Cadila Healthcare were trading 15.79 per cent down at Rs 324.35. The scrip opened at Rs 385.15 and had touched a high and low of Rs 385.40 and Rs 321.15, respectively, in trade so far. The benchmark BSE Healthcare index was down 0.48 per cent at 16,849.31.

Later the scrip closed 14.89 per cent down at Rs 327.80.

In a BSE filing, the company said, “We take quality and compliance matters very seriously and stand by our commitment to fully comply with cGMP quality standards across all our facilities. The company is working hard to ensure that the commitments made to the US FDA are fully completed. The company will continue to take all necessary steps to ensure that the US FDA is fully satisfied with our remediation of the above facilities. We further state that our products in the market are safe and effective and we are committed to supply the quality products to our customers across the globe.”

According to Cadila Healthcare, there are no products in the US market which use API of Zyfine facility. The company will respond to US FDA to address the observations within the statutory time permitted in the letter.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition