Cipla shares jumped 10% today after THIS update from USFDA. Details here

Pharma major Cipla Ltd shares rose sharply in Thursday's trade after the US Food and Drug Administration (USFDA) granted its Goa facility a "Voluntary Action Indicated (VAI)" status. The stock surged 9.88 per cent to hit a day high of Rs 1,557.45.

"Pursuant to Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015, and further to our intimation dated June 21, 2024, regarding the routine current Good Manufacturing Practices (cGMP) inspection at company’s manufacturing facility in Goa, India between June 10 – June 21, 2024, we hereby notify that the United States Food and Drug Administration (USFDA) vide communication dated Wednesday, October 30, 2024 (8:28 pm IST) has classified the above referred inspection as Voluntary Action Indicated (VAI)," Cipla stated.

The company's Goa facility was inspected by the US drug regulator in June this year, after which, six observations were issued.

This clearance from the USFDA will now be a key for Cipla's new launches such as the Abraxane generic. Abraxane is a paclitaxel-based chemotherapy drug used to treat cancer.

On technical setup, the scrip traded higher than the 5-day, 10-, 150-day and 200-day simple moving averages (SMAs) but lower than the 20-day, 30-, 50-day and 100-day SMAs. The stock's 14-day relative strength index (RSI) came at 45.75. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 26.09 against a price-to-book (P/B) value of 4.09. Earnings per share (EPS) stood at 54.32 with a return on equity (RoE) of 15.68.

The scrip saw high trading volume today as around 3.20 lakh shares were last seen changing hands. The figure was way more than the two-week average volume of 45,000 shares. Turnover on the counter came at Rs 48.98 crore, commanding a market capitalisation (m-cap) of Rs 1,23,489.42 crore.

As of September 2024, promoters held a 30.92 per cent stake in Cipla.