Cadila Healthcare jumps after US FDA clears Moraiya plant
Shares of pharma major Cadila Healthcare surged over 5% on Tuesday morning after the US Food and Drugs Administration (FDA) gave a clearance to the company's facilities at Moraiya in Gujarat.
July 17, 2012 / 12:19 IST
Moneycontrol Bureau
Shares of pharma major Cadila Healthcare surged over 5% on Tuesday morning after the US Food and Drugs Administration (FDA) gave a clearance to the company's facilities at Moraiya in Gujarat.The US FDA had in 2011 sent a warning letter to Cadila saying it had violated some rules related to manufacturing practice at Moraiya plant. The warning was based on inspections that the US drug regulator carried out at the facility, which is used to make tablets, capsules and injectible drugs. "During our January 17 - February 3, 2011 inspection of your pharmaceutical manufacturing facility, at Moraiya, Gujarat, investigators from FDA identified significant violations of Current Good Manufacturing Practice regulations for finished pharmaceuticals," US FDA had said then.It has now sent another letter to the company clearing the said facility following a re-inspection."The company has received a letter from US FDA, conveying that the facilities at Moraiya are acceptable. With this, the warning letter issued by them earlier is resolved," Cadila said in a notice to stock exchanges. Hitesh Mahida, an analyst at Fortune Equity Brokers said that apart from oral dosage form launches the Moraiya facility also houses injectible and nasal spray unit, which being limited in competition, should improve profitability of the company’s US business going forward."Company has filed for 18 injectible products and 7 Nasal sprays (most nasal spray generic products have less than 4 players in the market) from this facility. Cadila has filed for Nasal spray drug Azelastine which alone can generate close to USD 20 million of sales for Cadila," he said.At 10:30hrs, Cadila shares were up 4% at Rs 831.50 on NSE. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
