Shares of Cipla Ltd fell over 2% today after the pharmaceutical company’s wholly owned US subsidiary, InvaGen Pharmaceuticals, received 5 inspectional observations from the United States Food and Drug Administration (USFDA).
Cipla shares slipped 2.30% to Rs 1210.30 on BSE against the previous close of Rs 1238.85. The stock opened lower at Rs 1231 on Thursday. Market cap of the firm fell to Rs 98,036 crore. Cipla stock has a one-year beta of 0.3, indicating low volatility during the period.
Cipla stock has risen 13.48% this year. In a year, the stock has delivered 13.69% returns. Total 0.17 lakh shares changed hands amounting to a turnover of Rs 2.12 crore on BSE. Cipla stock hit a 52-week low of Rs 852 on March 22, 2023 and a 52 week high of Rs 1277.55 on August 10, 2023.
In terms of technicals, the relative strength index (RSI) of the stock stands at 57.6, signaling it’s trading neither in the overbought nor in the oversold zone. Cipla shares are trading lower than the 5 day, 10 day, 20 day, 50 day but higher than the 50 day, 100 day, 150 day and 200 day moving averages.
“We notify that the inspection was conducted at the manufacturing facility of InvaGen located in Central Islip, Long Island, New York, USA, from 11th September 2023 to 19th September 2023”, the company said in an exchange filing on September 20.
At the conclusion of the inspection, InvaGen was issued 5 inspectional observations in Form 483″, the disclosure stated. Cipla also added that there were no repeat or data integrity (DI) observations. “The company will work closely with the USFDA and is committed to addressing these comprehensively within the stipulated time.”
FDA issues form 483 if it finds deficiencies in quality system or regulatory violations.
Cipla logged a 45.1% rise in its consolidated net profit for the quarter ended June 2023 at Rs 995.7 crore compared to Rs 696.4 crore in the corresponding quarter of the last year.
Revenue climbed 17.7% to Rs 6,328.9 crore from Rs 5,375.2 crore, YoY, driven by performance in India, US & South Africa.
Cipla is in the business of manufacturing, developing, and marketing wide range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs). The company has its wide network of manufacturing, trading and other incidental operations in India and International markets.
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