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Aurobindo Pharma stock closes 3% lower after firm recalls blood pressure drug from US market

The large cap stock fell up to 4.70%  to 746.70 level compared to the previous close of 783.40 on the BSE.  It closed 3% or 23.50 points lower at 759.90 level on BSE.

twitter-logo BusinessToday.In        Last Updated: January 28, 2019  | 16:13 IST
Aurobindo Pharma stock closes 3% lower after firm recalls blood pressure drug from US market

The Aurobindo Pharma stock fell in trade today after the drug firm said it was recalling close to 5 lakh bottles of blood pressure lowering drugs in the US after the American health regulator found certain deviations from Current Good Manufacturing Practice (CGMP) regulations.

The large cap stock fell up to 4.70%  to 746.70 level compared to the previous close of 783.40 on the BSE.  It closed 3% or 23.50 points lower at 759.90 level on BSE.

The stock has fallen 3.54% during the last two days.

30 of 34 brokerages rate the stock "buy" or 'outperform', three "hold" and one "underperform", according to analysts' recommendations tracked by Reuters.

The stock closed above its 50 day and 200 day moving average of 746.77 and 725.81.

According to the latest Enforcement Report by the US Food and Drug Administration (USFDA), the Hyderabad-based Aurobindo Pharma is recalling 1,62,301 bottles of Amlodipine and Valsartan Tablets, 3,12,095 bottles of Valsartan and Hydrochlorothiazide tablets and 20,604 bottles of Valsartan tablets in the US.

The drug firm is recalling the drugs after FDA lab confirmed presence of an impurity N-nitrosodimethylamine (NDEA) contained in the API used to manufacture the product, above the interim acceptable daily intake level of 0.083 parts per million.

The company's US-based arm Aurobindo Pharma USA Inc is recalling the lots.

The USFDA has classified it as a Class-II recall, which is initiated in a "situation in which use of or exposure to a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote".

Another drug maker Lupin is voluntarily recalling 7,215 bottles of Cephalexin for Oral Suspension USP, used to treat a wide variety of bacterial infections, in the US due CGMP deviations.

According to the USFDA, the company is recalling the bottles as "manufacturing batch record could not be located". The US drug regulator has classified it as a Class-II recall.

Meanwhile, the Sensex closed 368 points lower at 35656. The Nifty too lost 119 points to 10,661.

 Edited by Aseem Thapliyal

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