Mumbai-based pharmaceuticals manufacturer Cipla said on Wednesday that it had received a warning letter from the US drug regulator, following inspection at its Goa facility. The US Food and Drug Administration (FDA) had inspected the company's manufacturing facility in Goa in September last year. Shares of Cipla were under pressure, declining nearly 6 per cent in the first half of the session. On the BSE, Cipla shares declined to as low as Rs 401.00 apiece during the session, down 5.72 per cent compared with their previous close of Rs 425.35. (Track Cipla Share Price Here)
In a regulatory filing early on Wednesday, Cipla said it remains committed to maintaining the highest standards of compliance and will work closely with the US regulator to comprehensively address all the observations.
The Cipla stock was off its intraday lows in late morning deals.
At 11:52 am, Cipla shares traded 1.72 per cent lower at Rs 418.05 apiece on the BSE, still under-performing benchmark index Sensex which was down 0.71 per cent after hitting a three-week low.
Earlier this month, Cipla reported a 5.67 per cent increase in net profit to Rs 351.03 crore for the quarter ended December 31 compared with the corresponding period a year ago, supported by strong growth across its prescription and trade generic businesses in India.
Its total income from operations grew 9.07 per cent to Rs 4,371.00 crore in the third quarter of financial year 2019-20.