HYDERABAD: Shares of Aurobindo Pharmaceuticals Ltd plunged to a five-year low on Thursday after the company received 14 observations from the US FDA at one of its manufacturing units.
The stock fell as much as 9.4 per cent to Rs 392.60 on BSE — the lowest level since August 2014. It closed at Rs 395.55.
The FDA inspected Unit IV, a general injectable formulation production facility in Hyderabad, from November 4-13, 2019.
According to Emkay Global Financial Services, the unit contributes significantly to revenue and operating profit, and has 47 pending filings that account for about 30 per cent of overall filings. As such, an overhang may hinder fresh filings in the US. As per estimates, Unit IV contributes about 9-10 per cent of the company’s US sales and 50-60 per cent of the total injectable sales in FY 2018-19.