Moneycontrol Bureau
Shares of Aarti Drugs plunged nearly 17 percent intraday on Tuesday after the US Food and Drug Administration (USFDA) issued an import alert on company’s Palghar unit in Maharashtra. However, the stock recovered some losses post clarification by the company saying this import alert won't have major impact on earnings.
The pharma company had received a warning letter for its Maharashtra plant in 2013. About 90 percent of company’s sales come from API and recently began some manufacturing of formulations.
Meanwhile, in a reply to the exchange on import alert, the company said, "Two of the facilities in Tarapur have received an import alert dated March 23, 2015 as per the FDA website. However, only one of that is US FDA facility. Second one, we had already delisted from the US FDA website couple of years back."
"For the said E-22 facility, we had a re-inspection in August 2014. Post that, we submitted four responses starting August 2014 and the last response in February 2015. We still have to receive an official communication from US FDA on the import alert after which we can take immediate actions to rectify the same," it explained.
For the current financial year 2014-15, the total US sales contributed to slightly less than 1 percent of the total sales volume. Hence this shouldn’t affect top-line and bottom-line significantly, said Aarti Drugs.
At 11:51 hours IST, the scrip of Aarti Drugs was quoting at Rs 622, down Rs 51.63, or 7.66 percent amid high volumes on the BSE.
Posted by Sunil Shankar Matkar
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