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.
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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.
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