Aurobindo Pharma has surged 6% to Rs 154, extending its previous day’s over 12% rally after US Food and Drug Administration’s (USFDA) has lifted the import alert for non-sterile products manufactured in its UNIT-VI cephalosporin facility based in Hyderabad.
The stock opened at Rs 158 on NSE and has seen a combined 2.21 million shares changing hands on the counter till 1125 hours on NSE and BSE.
On Thursday, Aurobindo Pharma said that USFDA as per their website update has lifted the import alert for non-sterile products manufactured in its UNIT-VI cephalosporin facility based in Hyderabad, India, thereby, paving the way for resumption of exports of 9 products to the US market.
The import alert was earlier imposed in February 2011. Prior to import alert, the unit was having annual US sales of US $33mn for the said products.
Analyst at Angel Broking maintain ‘Buy” rating with a target price of Rs 208 saying that the development is positive for the company as it indicates that the company is on its way to resolve its USFDA issues.
Earlier the company had indicated that the USFDA inspection for unit IV & VI has been completed. While Unit IV had no observations and Unit VI had 2-3 minor observations, for which the company had replied to the USFDA. So the removal alert of the unit VI, should increase the possibility of the approval of unit IV, says analyst.
The stock opened at Rs 158 on NSE and has seen a combined 2.21 million shares changing hands on the counter till 1125 hours on NSE and BSE.
On Thursday, Aurobindo Pharma said that USFDA as per their website update has lifted the import alert for non-sterile products manufactured in its UNIT-VI cephalosporin facility based in Hyderabad, India, thereby, paving the way for resumption of exports of 9 products to the US market.
The import alert was earlier imposed in February 2011. Prior to import alert, the unit was having annual US sales of US $33mn for the said products.
Analyst at Angel Broking maintain ‘Buy” rating with a target price of Rs 208 saying that the development is positive for the company as it indicates that the company is on its way to resolve its USFDA issues.
Earlier the company had indicated that the USFDA inspection for unit IV & VI has been completed. While Unit IV had no observations and Unit VI had 2-3 minor observations, for which the company had replied to the USFDA. So the removal alert of the unit VI, should increase the possibility of the approval of unit IV, says analyst.