Cipla slumps over 6 per cent as US FDA issues 4 observations for 3 Goa units

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Updated: September 30, 2016 4:48:37 PM

Cipla' shares slumped over 6 per cent on Friday after it informed bourses that US Food and Drug Administration has issued four observations for three of its Goa facilities.

Cipla slumps over 6 per cent as US FDA issues 4 observations for 3 Goa units

Cipla’ shares slumped over 6 per cent intraday on Friday after it informed bourses that US Food and Drug Administration has issued four observations for three of its Goa facilities. (Source: Reuters)

Pharma major Cipla’ shares slumped over 6 per cent on Thursday after it informed bourses that US Food and Drug Administration has issued four observations for three of its Goa facilities. While clarifying on the news reports, the company in a BSE fiing said, “US FDA recently concluded audit of our 3 manufacturing facilities at Goa and has issued 4 observations across these 3 facilities. These observations were primarily procedural in nature and the company has responded to these observations.”

At 1.39 pm, the scrip of the company was trading 2.73 per cent down at Rs 584.50. The scrip opened at Rs 601 and touched a high and low of Rs 605 and Rs 562.05, respectively. Later, the scrip ended 3.44 per cent down at Rs 580.25.

While addressing the company’s annual general meeting (AGM), Cipla Chairman YK Hamied on Thursday said, “The environment for the domestic pharma companies remains challenging with more products coming under price control, and other pressures such as government legislation to ban certain fixed dose combination drugs.” He further added that tightening of new product registration procedures, the approval time to market newer products has also been significantly impacted.

For the quarter ended June 30, 2016, Cipla reported a consolidated net profit of Rs 365.24 crore, down 43.74 per cent, against Rs 649.22 crore in the corresponding quarter a year ago. Consolidated net sales of the company slipped by 6.94 per cent year-on-year to Rs 3499.81 crore for the quarter under review against Rs 3761 crore in the same quarter last fiscal.

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