The large-cap pharma company’s share declined to 7.1 percent Rs 1,175.75 per share from its intraday low on Thursday after the Company announced the warning letter from the US Food and Drug Administration(USFDA).
According to Cipla filing, the US FDA conducted a current good manufacturing practices (cGMP) inspection at Cipla’s Pithampur manufacturing facility from February 6 to 17, 2023. The US FDA issued a warning letter to the company regarding the inspection on November 17.
Furthermore, the company stated, “This warning letter summarizes violations pertaining to procedures or controls used at the facility that do not comply with the prescribed cGMP regulations and provides directed guidance for necessary corrections.”
The company will closely collaborate with the US FDA to address the issues in a thorough and timely manner and will respond to the warning letter within the designated time frames in order to maintain continuous compliance.
“We maintain quality and compliance with the highest priority and are dedicated to adhering to the cGMP quality standards.” stated in the company filing.
The company has reported its net revenue rose 14.5 percent year on year from Rs 5,828 crores in Q2FY23 to Rs 6,678 crores in Q2FY24. In addition, net profit rose 43 percent year on year, from Rs 789 crores in Q2FY23 to Rs 1,130 crores in Q2FY24.
Cipla Limited is a large-cap business with a market valuation of Rs 95,422 crores. The company has a low debt-to-equity ratio of 0.02 and a low price-to-earnings ratio of 28 when compared to its peers.
The share price of the company has increased by 25 percent in the last six months and by 10 percent year to date.
The company’s promoters own 33 percent, foreign institutional investors 25 percent, the general public 16 percent, and domestic institutional investors 24 percent.
Cipla Limited is a multinational pharmaceutical company headquartered in Mumbai, India. Cipla’s primary focus is on the development of medicines to treat respiratory diseases, cardiovascular disease, arthritis, diabetes, depression, and a variety of other medical conditions.
Written by Sriram KV
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