The Aurobindo Pharma stock fell as much as 5.5 per cent after the US Food and Drug Administration (FDA) said there were deficiencies in maintaining manufacturing quality standards at its Hyderabad facility. At 3:00 pm, the stock was trading 3.70% lower at 601 level. The stock hit an intra day low of 590 level on BSE.
It closed at 624.10 level on Friday and opened at 605 level in today's trade.
The pharma firm said in a statement that the United States Food and Drug Administration (US FDA) conducted an inspection at the company's Unit IV, a formulation manufacturing facility located at Pashamylaram, Hyderabad from February 12, 2018 to February 20, 2018.
At the end of inspection, the US regulator issued a form 483 with nine observations to the company.
The early fall in the stock can be attributed to the nine observations the company received from USFDA. The firm said none of the observations were related to data integrity or repetitive in nature.
"We are in the midst of providing a comprehensive response to the observations and would be replying to the FDA within 15 working days from the date of closure (20th February, 2018) of audit," it added.
The stock is down 12.48% since the beginning of this year. During the last one year, the stpock has fallen 10.79% on BSE.
While market capitalisation of the stock stood at Rs 35,271 crore, volume of the shares traded on the BSE amounted to 403,882.