Shares of Cadila Healthcare today slumped nearly 15 per cent after the company said it has received a warning letter from the US Food and Drug Administration (USFDA) for its two facilities in Gujarat.
After witnessing a sharp decline of 16.79 per cent to Rs 320.45 during the day, the stock finally settled at Rs 327.80, down 14.89 per cent on BSE.
At NSE, shares of the company tumbled 14.75 per cent to end at Rs 327.55.
In terms of volume, 34.33 lakh shares of the company changed hands at BSE and over two crore shares were traded at NSE during the day.
"Cadila Healthcare witnessed heavy selling pressure as the company received warning letters of USFDA for Moraiya formulation facility and Ahmedabad API facility. The stock was down by almost 17 per cent intraday," said Hiren Dhakan Associate Fund manager at Bonanza Portfolio.
In a regulatory filing the Cadila Healthcare said it has "received a warning letter issued from USFDA relating to its Moraiya formulation facility and Ahmedabad API facility (Zyfine) in Gujarat."
"The company is working hard to ensure the commitments made to USFDA are fully completed. The company will continue to take all necessary steps to ensure the US health regulator is fully satisfied with our remediation of the above facilities," it added.
Cadila Healthcare clarified there are no products in the US market which use API (active pharmaceutical ingredient) of the Zyfine facility.
