When any pharma stock falls, it is almost always the FDA at the crux. And that’s exactly the reason why Cipla opened today with a loss of almost 5.5% at Rs.402.20 and went down to an intraday low at Rs.401, a fall of over 5.7%. Its 52-week low stands at Rs.389.55.
Today morning, Cipla conveyed to the exchanges that the US FDA inspection did not go down too well.
The FDA was inspecting its Goa manufacturing facility from 16-27 September 2019 and post that, it has received a Warning Letter from USFDA.
The Company said that it remains committed to maintain the highest standards of compliance and will work closely with the agency to comprehensively address all the observations.
A warning letter indicates that higher FDA officials have reviewed the observations and that a serious violation may exist. This formal notification allows for voluntary and prompt correction action.