Shares of Cipla were trading flat at open on November 20 after it received a warning letter from the United States Food and Drug Administration (USFDA) on November 18. As of 9:20am, the stock was trading at Rs 1,248.35.
In a regulatory filing, Cipla said that the warning was for the routine current Good Manufacturing Practices (cGMP) inspection conducted at its Pithampur manufacturing facility from February 6 to 17, 2023. The company has said that it will respond to the warning letter within the stipulated time and work closely with the US FDA to address the concerns.
In October this year, the US FDA also carried out inspections at InvaGen Pharmaceuticals, a wholly owned subsidiary of Cipla, in Central Islip, Long Island, New York. The facility issued an establishment inspection report (EIR).
Over the last five years, stocks of the pharmaceutical major have gained over 130 percent. In Q2FY24, the company reported a 43.3 percent year-on-year increase in net profit to Rs 1,131 crore. Revenue for the same period also grew 14.6 percent YoY to Rs 6,678 crore.
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