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Aurobindo stock recovers 3% after clarification on USFDA

Hans India 2019-10-09 23:23:20

New Delhi: Shares of Aurobindo Pharma recovered over 3 percent on Wednesday after the company clarified that none of the seven observations from the US health regulator for its Telangana unit were linked to data integrity.

In a regulatory filing post market hours on Monday, Aurobindo Pharma said that it is "confident of addressing these issues within the stipulated timeline". The equity market was closed on Tuesday on account of Dussehra. Shares of the company opened on a strong note at Rs 472, then gained further ground and touched a high of Rs 485, registering a jump of 5.46 percent. The scrip finally settled at Rs 474.30, up 3.45 percent over previous close on the BSE. On the NSE, the stock gained 3.16 percent to close at Rs 474.40.

The exchange had sought a clarification from the company regarding declining share prices on the back of USFDA observations. Shares of Aurobindo Pharma had slumped over 19 percent and had hit its 52-week low of Rs 450 on Monday after the US health regulator issued seven observations.

The United States Food and Drug Administration (USFDA) conducted a Current Good Manufacturing Practices (CGMP) inspection at the company's unit-7 manufacturing facility from September 19 to 27, Aurobindo Pharma had said in a BSE filing.