Biocon shares in focus today as US FDA issues four observations for insulin facility

Shares of Biocon Ltd are in focus today after the United States Food and Drug Administration (US FDA) issued four observations for Biocon Biologics facility. The inspection was conducted at Biocon Biologics Limited’s Biocon Campus (Site 1) facility between February 20- February 28, 2024.

The inspection is related to the rh-Insulin (rhI) Drug Substance (DS) supply to a customer for veterinary use.

"The trigger for this inspection was a Pre-Approval Supplement (PAS) filed by our customer late last year," the company said in a regulatory filing.

Biocon stock ended 2.05% higher at Rs 276.50 on Thursday against the previous close of Rs 270.95 on BSE. The stock touched an intraday high of Rs 277.60 on BSE.

The stock has gained 21% in a year and risen 8.70% since the beginning of this year.

Total 53.60 lakh shares of the firm changed hands amounting to a turnover of Rs 145.15 crore. Market cap of the firm rose to Rs 33,196 crore on BSE.

The share hit its 52-week high of Rs 307 on February 6, 2024 and a 52 week low of Rs 191.60 on March 21, 2023.

The pharma major said it would submit a comprehensive Corrective and Preventive Action (CAPA) Plan to the US FDA within the stipulated time and is committed to addressing these observations expeditiously. The outcome of this inspection at Site 1 does not impact the manufacturing and distribution of the company’s commercial products in the US market, the company added.

In terms of technicals, the relative strength index (RSI) of the stock stands at 51.6, signaling the stock is trading neither in the overbought nor in the oversold zone. Biocon shares stand higher than the 5 day, 50 day, 100 day, 200 day but lower than the 10 day and 20 day moving averages.