Cipla rebounds after clarification on USFDA observations for Goa unit

The stock moved higher to Rs 558, bouncing back 7% from its early morning low of Rs 523 on the BSE.

Cipla has moved higher to Rs 558, bouncing back 7% from its early morning low on the BSE, after the company said that the observations received from the US drug regulator are procedural in nature.

The stock of pharmaceutical company dipped 6.4% to Rs 523 after the media report suggested that the Cipla received the United States Food and Drug Administration (USFDA) observations for Goa unit.

“The US FDA conducted a product specific pre-approval inspection at our Goa plant in January 2018. We received certain observations which are procedural in nature. We have already responded to the agency on all the observations,” Cipla said in a clarification on news report.

At this stage, we do not foresee any impact on the other products being manufactured/filed from the plant. Post this inspection, we have received 2 product approvals from the plant, it added.

At 12:38 pm; Cipla was trading 0.88% lower at Rs 554 on the BSE, as compared to 0.4% rise in the S&P BSE Sensex. A combined 6.6 million shares changed hands on the counter on the BSE and NSE so far.