Aurobindo Pharma dips on getting OAI for oral solids formulation plant

USFDA conducted an inspection of Unit VII, which is an oral solids formulation manufacturing facility of Aurobindo Pharma Limited.

Post inspection, the company has received a letter from USFDA classifying the inspection conducted at the aforesaid facility as Official Action Indicated (OAI).

The company believes that this OAI classification will not have any material impact on the existing revenues or the supplies to its US business at this juncture. It will work closely with the regulator to comprehensively address the issues.

For the quarter ending September 2019, the company’s revenue increased by 18 per cent YoY to Rs 5,600 crore, led by a healthy growth in our key geographies. EBITDA before forex and other income stood at Rs 1,167 crore, an increase of 14 per cent over the corresponding previous period. EBITDA margin was at 20.8 per cent for the quarter. Net profit increased by 5 per cent YoY to Rs 640 crore.

Aurobindo Pharma is engaged in producing oral and injectable generic formulations and Active Pharmaceutical Ingredients (APIs). Its product portfolio is spread over seven therapeutic/product areas, including antibiotics, antiretroviral, cardiovascular, central nervous system, gastroenterological, anti-allergies and anti-diabetics.

On Thursday, in the early morning session, the stock of Aurobindo Pharma dipped 8 per cent to Rs 466.75 from Rs 507.30 on BSE.