Multibagger Pharma Stock Rises Nearly 3 Per Cent After US FDA Observations on Telangana Facility
The inspection, conducted between December 9 and December 17, 2024, resulted in two procedural observations from the US FDA.
Aurobindo Pharma’s shares saw a 2.89 per cent increase, ending the session at Rs 1,248.80 on the NSE, following the completion of an inspection by the United States Food and Drug Administration (US FDA) at one of its key facilities. The facility in question, Unit-V, is an active pharmaceutical ingredient (API) manufacturing site operated by Apitoria Pharma Private Ltd, a wholly owned subsidiary of Aurobindo Pharma, located in Pashamylaram Village, Telangana.
The inspection, conducted between December 9 and December 17, 2024, resulted in two procedural observations from the US FDA. The company stated these observations are procedural in nature and assured stakeholders that it will address them within the stipulated time frame. Aurobindo Pharma also confirmed it would provide updates if any further developments arise.
Q2 FY25 Performance
The company reported strong financial results for Q2 FY25. Revenue from operations increased by 8 per cent YoY to Rs 7,796 crore during the quarter. Its earnings before interest, tax, depreciation, and amortization (EBITDA), excluding forex and other income, rose by 11.6 per cent to Rs 1,566 crore. The EBITDA margins expanded by 65 basis points YoY, reaching 20.1 per cent.
Aurobindo Pharma’s net profit rose by 8.6 per cent year-on-year (YoY) to Rs 817 crore, compared to Rs 752 crore in the same quarter last year. This growth was driven by robust sales in Europe and other growth markets.
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Stock Price Performance
On Wednesday, Aurobindo Pharma’s stock closed at Rs 1,248.80 on the NSE, reflecting a 2.89 per cent increase, even as the benchmark Nifty 50 index declined by 0.56 per cent. The company’s shares have gained 15 per cent in 2024 and an impressive 182 per cent over the past two years. Aurobindo Pharma’s market capitalization now stands at Rs 72,530.5 crore.
About the Company
Aurobindo Pharma Limited manufactures generic pharmaceuticals and active pharmaceutical ingredients.The company’s robust product portfolio is spread over 6 major therapeutic/product areas encompassing Antibiotics, Anti-Retrovirals, CVS, CNS, Gastroenterologicals, and Anti-Allergies. The Company is marketing these products globally, in over 150 countries.
Disclaimer: The article is for informational purposes only and not investment advice.