Aurobindo Pharma falls after regulatory concerns

The Hyderabad-based pharma major Aurobindo Pharma announced on Friday that it has received letters from the USFDA regarding inspections carried out earlier at the company’s API facilities.
The company received letters from the US Food and Drug Administration (USFDA) classifying the inspections concluded at its API facilities of Unit I and Unit XI and intermediates facility of Unit IX in February 2019 as Official Action Indicated (OAI).
The company, in a press release, added that it has already submitted its initial response to the USFDA. The company is sending further updates on the committed corrective actions. These OAI classifications will not have an impact on the supplies or the revenue from operations of these facilities.
Aurobindo Pharma is engaged in manufacturing pharmaceutical products. It offers active pharmaceutical ingredients, intermediates and generic formulations like astemizole, domeperidone and omeprazole; anti-infective, oral and sterile antibiotics, pain management and osteoporosis segments.
Reacting to the news, the stock tanked more than 7 per cent intra-day. Stock closed with losses of more than 7 per cent to end at Rs. 670.25 on BSE.