Cipla hits new low

Cipla went down 5% to hit a new 52-week low at Rs.418 today. It has come off the low but remains firmly in the red at 425 levels.

The company announced on Saturday afternoon that the US FDA conducted a cGMP inspection at its Goa manufacturing facility from September 16-27, 2019.

The inspection ended with 12 observations, none of which are related to data integrity.

The company has said that it will respond to the agency within the stipulated timeline.

Prior to this, in July, the FDA had inspected its API manufacturing facility in Virgonangar, Bengaluru and there too, it issued 7 observations and Cipla had said that none of them were data integrity related.

Data integrity or not, any observation from the FDA is viewed very negatively by the market.