Aurobindo Pharma stock: Good growth in Europe may cushion downside

Analysts said given the strong European prospects and as most concerns relating to unit-IV are priced in, downside was limited for the stock

Aurobindo Pharma continues to be under pressure on the bourses owing to the US Food and Drug Administration’s (US FDA’s) observations to its unit-IV facility at Hyderabad.
 
On Monday, Aurobindo confirmed that the unit has received nine observations between February 12 and February 20. As a result, some caution will prevail till complete clearance is given to the unit, even as analysts say the observations are not very serious.
 
The firm’s unit-IV makes injectables and accounts for a third of Aurobindo’s pending abbreviated new drug applications (ANDAs), analysts said. An ANDA contains data, which is submitted to the