Natco Pharma shares tumbled over 12 per cent on Monday after the company on Sunday said it has received “minor” observations by US Food & Drug Administration (USFDA) following recent inspections at its two facilities and they will not have an adverse impact on its current or future products.
The share price of Natco Pharma settled 12.61 per cent down at Rs 409.30.
In a BSE filing, Natco Pharma said, “An inspection was conducted by the United States Food & Drug Administration (USFDA) in two of its manufacturing facilities recently the Active Pharmaceutical Ingredients (API) manufacturing facility at Manali, near Chennai, and the Pharmaceutical Formulations facility at Kothur, near Hyderabad, during early February and March, 2016, respectively.”
The company has received 483 observations for both facilities and believes them to be of minor in
nature. “The company has already sent response and compliance report for these observations and believes that there would be no adverse impact to its current or future pipeline products coming from these facilities,” Natco Pharma said in a BSE filing.
Religare Securities in a research note said, “We expect the stock to remain under pressure in the near term but retain our estimates until further clarity emerges. We have a ‘Buy’ rating on the stock with a target price of Rs 580.”