Aurobindo Pharma up 12% after US Food and Drug Administration releases Hyderabad EIR

Share BSE's price rose on Friday after the company announced that its plant in had received a Voluntary Action Initiation (VAl) Qualified Enterprise Inspection Report () from the FDA 12% to Rs 406. Drugmakers' shares traded higher for the fourth consecutive day, rising 38% over the period.

"The company's active pharmaceutical ingredient (API) manufacturing facility in Portlam, Hyderabad, has unit VIII units that have obtained the US and (US FDA) Agency Inspection Report (EIR) and Voluntary Action (VAl) Qualification, ” Said in an exchange document.

On November 6, 2020, the company stated in a regulatory document that the US Food and Drug Administration has inspected Unit VIII of Hyderabad's Gaddapotharam API production facility from October 21 to 25, 2019. At the end of the inspection, issued a "form". 483 & # 39 ;, there are 4 for this facility.

However, analysts at Nirmal Bang Equities expect the company's January-March quarter (Q4 FY20) to report lower-than-expected earnings to the delayed completion of the Sandoz transaction. In addition, Competition for major injectable assets (ertapenem) in the United is increasing, so downward pressure on its injectable sales is expected.

The brokerage firm revised its FY20 EPS estimates from 48.7 to 44.8. Revised valuation multiples reflect business risks due to compliance issues at its large manufacturing facilities (Units IV and VII), so proceed cautiously, and delays in Sandoz transactions delay as acquisitions decline Another setback.

Aurobindo 's share price hit a 52-week low of Rs 281 on Monday, March 23, and revised its price by 53% from a high of Rs 602 hit on February 19, 2020.

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11:44 AM; its trading price rose 8% to Rs 389, while Standard & Poor's BSE Sensex fell 0.72%. So far, 3.8 million shares have been traded on NSE and BSE.

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