Cipla slips by 6 per cent on USFDA observation

The share price of pharma major Cipla slipped by over 6 per cent on the bourses in Tuesday’s trade as the US Food and Drug Administrator issued observations to the company’s Goa manufacturing facility.

The company’s Goa unit was inspected in January and issued observations that the batch production and control records of the unit are deficient and the established test procedures are not followed, among other procedural deficiencies.

Cipla had posted a hike in profits by nearly 7 per cent to Rs. 401 crore for the third quarter of fiscal year 2018 on a yearly basis. The share price of the company has slipped by over 8 per cent on the bourses on a year-to-date basis.

On Tuesday, the stock hit an intraday low of Rs. 556.75 per share and an intraday high of Rs. 523 per share on BSE. It had touched its 52-week low of Rs. 479 per share on May 26, 2017 and its 52-week high of Rs. 663 per share on November 7, 2017 on BSE, respectively.

At 11:32 hours IST, the stock was trading at Rs. 551.95 per share, lower by 1.32 per cent on BSE on Tuesday. Meanwhile, S&P BSE Sensex was trading at 33,078.39 level, up by 0.47 per cent and NSE Nifty50 was trading at 10,141.85 level, higher by 0.47 per cent.