On Saturday, Shilpa Medicare announced that it received a warning letter on 9th Oct through email from the USFDA for its Jadcherla facility, Telangana.
The Company believes that the warning letter will have minimum impact of disruption of supplies and the existing revenues from operations of this facility.
Shilpa Medicare currently has three manufacturing facilities approved by USFDA - One formulation facility and two API facilities. None of these facilities except Jadcherla has any outstanding issues with the USFDA at this point of time.
The stock, which had closed at Rs.544.80 on Friday, opened weaker at Rs.490 and fell 12% to Rs.480; it has recovered since then and is now trading at Rs.504 levels.