Cipla shares nosedived 7% to reach Monday’s intraday low of ₹956.20 as the markets opened for trading.

What Happened: The pharmaceutical giant on Saturday informed that the United States Food and Drug Administration (USFDA) conducted a current Good Manufacturing Practices (cGMP) inspection at the company’s Pithampur unit. The Madhya Pradesh-based unit manufactures respiratory and oral products for the drug major.

Read Next: Why Apollo Hospital Analysts See Double Figure Upside Even After Q3 Earnings Miss

After the inspection that went on from Feb. 6 to 17, the company was handed 8 inspectional observations in Form 483. According to the USFDA website, form 483 is issued to a firm when an investigator “has observed any conditions that in their judgment may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related acts.”

The company in a regulatory filing said that it will work closely with the USFDA to address the concerns
comprehensively within the stipulated time.

Price Action: Cipla shares traded 5.89% lower at ₹965.35 in the early hours of trading on Monday.

See Also: HDFC Life Shares Recoup From 52-Week Low To Surge 5%: Is Budget-Related Selloff Over?