Cadila Healthcare lost 4.33% to Rs 1,114.95 at 15:03 IST on BSE, with the stock recovering from a steep intraday slide triggered by reports that the USFDA has expressed concerns over the manufacturing process at the company's Moraiya facility.
Meanwhile, the BSE Sensex was down 145.29 points, or 0.56%, to 25,942.13
On BSE, so far 2.03 lakh shares were traded in the counter, compared with an average volume of 16,674 shares in the past one quarter.
The stock saw high intraday volatility. The stock lost as much as 10.07% at the day's low of Rs 1,048 so far during the day. The stock rose as much as 0.22% at the day's high of Rs 1,168.10 so far during the day. The stock hit a record high of Rs 1,195 on Wednesday, 30 July 2014. The stock hit a 52-week low of Rs 631 on 20 August 2013.
The stock had outperformed the market over the past one month till 30 July 2014, rising 8.9% compared with 2.65% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, surging 19.08% as against Sensex's 16.37% rise.
The large-cap company has an equity capital of Rs 102.37 crore. Face value per share is Rs 5.
As per reports, the US Food and Drug Administration (USFDA) has expressed concerns over the manufacturing process of at least one product at the drugmaker's Moraiya facility in Gujarat. However, the USFDA has not expressed concerns over the entire facility. The USFDA reportedly communicated its concern to Cadila Healthcare in a Form 483, a letter in which the agency typically outlines violations of standard manufacturing practices. The FDA inspected the Moraiya plant in the second week of July 2014, reports added.
Once the Form 483 is sent, the company has 15 days to respond before the USFDA takes any further action.
Meanwhile, a foreign brokerage has reportedly downgraded the Cadila Healthcare stock to sell from buy on stiff valuations. The brokerage has reportedly said that Cadila's valuations have moved well ahead of fundamentals despite gradual recovery in the sector and improving US business.
Cadila Healthcare's consolidated net profit rose 23.1% to Rs 240.21 crore on 24.9% increase in total income to Rs 2060.53 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours on Wednesday, 30 July 2014. The stock had gained 3.22% to settle at Rs 1165.45 on Wednesday, 30 July 2014.
Cadila Healthcare said that sales growth was buoyed by the company's formulations business in US, which grew by 88% in Q1 June 2014. During the quarter, the group filed 26 additional ANDAs (abbreviated new drug applications) with the US Food and Drug Administration and launched 4 new products in the US.
The group posted a growth of 19% with 12 new product launches in the different emerging markets during the quarter. In the domestic formulations market, the company launched 19 new products, including line extensions, of which 6 products were the first to be launched in India.
Cadila Healthcare is a global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare therapies.
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