Cadila Healthcare Shares Slump On Receiving Warning Letter From USFDA

0

Cadila Healthcare shares fell over 15 per cent in the morning trade on Thursday after the pharma company informed stock exchanges that it has received a warning letter from the US FDA relating to its Moraiya formulation facility and Ahmedabad API facility.

 
At 10.35 am, shares of Cadila Healthcare were trading 15.79 per cent down at Rs 324.35. The scrip opened at Rs 385.15 and had touched a high and low of Rs 385.40 and Rs 321.15, respectively, in trade so far. The benchmark BSE Healthcare index was down 0.48 per cent at 16,849.31.

 
So far, over 9 lakh shares of Cadila Healthcare exchanged hands on the BSE as compared with two-week average daily volume of 1.61 lakh shares.

 
In a BSE filing, the company said, “We take quality and compliance matters very seriously and stand by our commitment to fully comply with cGMP quality standards across all our facilities. The company is working hard to ensure that the commitments made to the US FDA are fully completed. The company will continue to take all necessary steps to ensure that the US FDA is fully satisfied with our remediation of the above facilities. We further state that our products in the market are safe and effective and we are committed to supply the quality products to our customers across the globe.”

 
According to Cadila Healthcare, there are no products in the US market which use API of Zyfine facility. The company will respond to US FDA to address the observations within the statutory time permitted in the letter.

Cadila-Healthcare-Shares-Slump-On-Receiving-Warning-Letter-From-USFDA

Asmaa Mubita is a Kenyan journalist of international repute with over fifteen years of experience in broadcast journalism. Asmaa Mubita began his journalism career at the Kenyan state broadcaster (KBC) and later worked at the KTN owned by the Standard Group and Citizen Television, the flagship brand of Royal Media Services. These exploits together with his reporting experience with the Voice of America, CNN and BBC have been rewarded with local and global recognition.