Cipla was the second biggest loser on the NSE Nifty 50 today, down 6.12 per cent at closing. Its share price fell below Rs 1,000 and settled at Rs 963. Here’s all you need to know.
Shares of pharma giant Cipla fell 7 per cent during intraday trade on Monday, but recovered marginally to settle slightly higher.
The company’s stock was the second biggest loser on the NSE Nifty 50 today, down 6.12 per cent at closing. Its share price fell below Rs 1,000 and settled at Rs 963.
The sharp fall in Cipla’s stock came after the company said that the United States Food and Drug Administration (USFDA) issued Form 483 with eight observations after inspecting its Pithampur manufacturing facilities.
“Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby notify that the United States Food and Drug Administration (USFDA) conducted a current Good Manufacturing Practices (cGMP) inspection at our Pithampur manufacturing facility from 6th – 17th February, 2023,” Cipla said in a recent exchange filing.
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“On conclusion of the inspection, the Company has received 8 inspectional observations in Form 483. The Company will work closely with the USFDA and is committed to address these comprehensively within stipulated time,” the company added.
Analysts believe that the stock is likely to remain under pressure till the results of the inspection are out. Cipla has also underperformed in the past month, having fallen over 9 per cent. The company’s stock has been under pressure ever since its Q3FY23 results and has been trading with a negative bias for over two months.
Keven Bayer
Emanuel Schmitt
Kayleigh Rogahn