Shares of Aurobindo Pharma plunged over 20 per cent, hitting a 52-week low, on the Bombay Stock Exchange (BSE) on Monday after reports suggested that the drug maker had received US drug regulator's adverse observations.
The company, in an exchange filing, said that the US Food and Drug Administration (FDA) has issued seven observations, including failure to thoroughly follow procedures applicable to quality control, after inspecting its Unit-7 between September 19-27, 2019.
"The inspection ended with 7 observations. We believe none of the observations are related to data integrity," Aurobindo Pharma said in a filing to the BSE.
The company, however, is confident of addressing these issues within the stipulated timeline, it added.
Reacting to the news, share price of Aurobindo Pharma declined as much as 20.65 per cent to hit a 52-week low of Rs 450 on the BSE, after opening tad lower at Rs 560 against previous close level of Rs 567.15 on the BSE. The scrip closed trade at Rs 458.50, down 19.16 per cent.
The stock witnessed a huge surge in volumes as 11.93 lakh shares changed hand over the counter as compared to two-week average volume of 0.74 lakh shares on the BSE.
On the National Stock Exchange (NSE), stocks of Aurobindo Pharma ended 20.41 per cent lower at Rs 451.70 after opening lower at Rs 560.55. During the day's trade, the scrip hit 52-week low of Rs 450.35.
The drug regulator also observed that the control procedures were not established, while written production and process controls were not developed in execution of production, process controls.
Shares of Glenmark Pharmaceuticals and Lupin were also under stress in Monday's trade, hitting their respective 52 weeks lows, which dragged the Nifty Pharma index over 3% in today's trade.
Glenmark Pharmaceuticals shares hit a 52-week low of Rs 269.75 after the drug major said it has received a warning letter from the US health regulator for its Baddi facility in Himachal Pradesh. Paring some early losses, the Glenmark Pharma stock closed trade at Rs 286.30, down 9.30 per cent.
In a similar trend, shares of Lupin ended at Rs 668.80, down 2.89 per cent, on the BSE, after hitting a 52-week low of Rs 646.20 during the day's trade.
Edited by Chitranjan Kumar