US regulator's inspections at Aurobindo spook investors

No major negative observations by watchdog, but Street edgy as more inspections lie ahead

From its all-time high of Rs 895 seen six months ago, the Aurobindo Pharma stock has recently fallen to 14-month lows. 

Strong US growth and healthy rise in US approvals for products fuelled the rally last year. But the US Food and Drug Administration (FDA)’s inspections at the company’s plants afterwards unnerved the Street. This is not surprising, given the already weak sentiment towards Indian pharma which faces regulatory problems in the US. 

For Aurobindo, the latest development is the US issuing six observations after inspecting the company’s Unit-III mid-April. Despite company statement that the observations were procedural, the Street