Aurobindo Pharma tanks post unprecedented move by USFDA

Aurobindo Pharma on 21st February informed the bourses that it has received a follow-up communication from the U.S. Food and Drug Administration (USFDA), that the inspection conducted by the USFDA at Unit IV, from November 4, 2019 to November 13, 2019, is still open and under review, by way of rescindment of 90-day VAl letter that was issued by them on February 18, 2020. This move is unprecedented and now there is overhang on the company that it might face OAI for Unit-IV.

On 19th February the agency had issued Establishment Inspection Report (EIR) with Voluntary Action Initiated (VAl) status. With this positive development the stock of Aurobindo Pharma had surged nearly 20 per cent but now with this under review status the stock in today's trading session has reacted negatively and tanked as much as 18 per cent to touch an intraday low of Rs 491.90.

Unit-IV of Aurobindo Pharma has the largest number of filings pending approval of 47 ANDAs.