Piramal Pharma zooms 5% on zero observations from US FDA

The US Food and Drug Administration had conducted a Good Manufacturing Practices (GMP) inspection at Piramal Pharma's Digwal facility during March 27-31.

Shares of Piramal Pharma surged 5 percent intraday on April 3 after the US Food and Drug Administration (FDA) completed its inspection of the company's Digwal facility with zero Form-483 observations.

The FDA issues a Form 483 when a facility fails to comply with the regulator's manufacturing norms.

Domestic pharmaceutical companies have suffered the consequences of heightened regulatory scrutiny from the US drug regulator in the past few months after physical inspections restarted as coronavirus ebbed.

Issuance of Form 483 also causes a delay in the launch pipeline for drugs to the US market, which makes up a significant portion of revenues for several Indian drugmakers.

Catch up on all LIVE stock market updates here

At 1.50 pm, shares of Piramal Pharma were trading at Rs 71.80 on the National Stock Exchange, up 4.89 percent from the previous close.

The FDA conducted a Good Manufacturing Practices inspection of Piramal Pharma's Digwal facility during March 27-31.