New Delhi: Aurobindo Pharma shares hit the lower circuit on Monday. US drug regulator USFDA canceled the “Voluntary Action Indicated (VAI)” letter for the company’s Hyderabad unit -IV. The USFDA issued this letter three days ago. The company has said that the investigation is still going on and this status may change. Aurobindo Pharma shares are trading 15.55 per cent down at Rs 506.55.
On Wednesday, giant pharmaceutical company Aurobindo Pharma received a Voluntary Action Initiated (VAI) from the US Drug Regulator with an Establishment Inspection Report. The letter was issued by the regulator after finishing the investigation at Unit-4 of the company’s Hyderabad plant. But this letter was canceled after three days.
Unit-IV of Hyderabad is an important sterling unit of the company. In the estimated sales for the fiscal year 2020, the share of this drug can be 10% i.e. $ 17 million. Many of the company’s filings are still pending.
The brokerage firm anticipates a big drop in shares as its shares gained 20 per cent following the announcement by VAI. According to the brokerage firm’s report, “The company’s shares have again fallen to a fair value of Rs. 540. The company’s shares rose 20% to Rs. 620 after VAI’s announcement.”
