Aurobindo Pharma shares fall up to 5% as US FDA flags nine issues at Telangana unit

Aurobindo Pharma share price

• Aurobindo Pharma shares drop after reports claim major US FDA violations
• US FDA found poor sanitation, contamination, and data issues
• Company has not yet responded to stock exchange queries

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The shares of Aurobindo Pharma plunged in trade on February 18 amid reports of nine significant observations by the US Food and Drug Administration (US FDA) at its Unit 7 manufacturing facility in Telangana.

The shares of the pharma player dropped to Rs 1,129.20 apiece on Wednesday, snapping a two-session gaining streak.

US FDA's observations on Aurobindo Pharma unit:

The US FDA has issued several serious observations during its inspection at Aurobindo Pharma’s unit, CNBC-TV18 reported. It listed sanitation and contamination as one of key focus areas, as US FDA reportedly found that the equipment was not cleaned for years. Cross contamination levels were reported 380 times above limits, with presence of E. Coli and bird droppings in systems, it added.

The FDA also found that staff had deletion access of raw data, along with unexplained trial runs. It also reported backdating of microbiology documents, along with mismatch between electronic dissolution data and physical records.

After the reports led to a sharp decline in share price, the stock exchanges sought a clarification from the company. It is yet to issue any statement regarding to same, as seen at 12.40 pm.

Aurobindo Pharma share price:

After hitting a 52-week low of Rs 1,010 apiece on April 7, the stock gained around 27 percent to hit a 52-week high of 1,278.6 apiece on April 24 last year. The stock has however fallen 12 percent since then.

Aurobindo Pharma currently has a market capitalization of Rs 67,000 crore, and the stock’s P/E ratio stands at 19.62.

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