Shares of Cadila Healthcare today zoomed almost 20 per cent, adding Rs 7,309 crore to its market valuation, after the company said the US health regulator has inspected the firm's Moraiya plant and found it meeting the manufacturing norms.
Cheering the news, shares of the company skyrocketed 19.94 per cent to end at Rs 429.45 on BSE. During the day, the stock advanced by 22.83 per cent to Rs 439.80 -- its 52-week high.
On NSE, shares of the company soared 19.83 per cent to close at Rs 429.50.
Led by the sharp surge in the stock, the company's market valuation rose by Rs 7,309.63 crore to Rs 43,964.63 crore.
On the volume front, 10 lakh shares of the company were traded on BSE and over 87 lakh shares changed hands at NSE during the day.
"Cadila Healthcare did not got any 483 issued in favour of its Moriaya plant. This marks an important relief for the company," said Sarabjit Kour Nangra VP Research - Pharma, Angel Broking.
"United States Food and Drug Administration (USFDA) inspected company's Moraiya facility from February 6, 2017 to February 15, 2017. At the end of the inspection no observation (483) is issued," Cadila Healthcare said in a filing to BSE.
The FDA Form 483 notifies the company's management of objectionable conditions.
As per the US health regulator's site "An FDA Form 483 is issued to firm management at the conclusion of an inspection when an investigator(s) has observed any conditions that in their judgement may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related Acts".