Abbott India's shares initially struggled, but later gained ground on September 15th following the company's announcement that corrective measures were being taken at its Goa plant.
The stock was trading at Rs. 23,120, up 0.91 percent at 10:45 am, compared to its previous close. Earlier this morning, the stock had dipped to a low of Rs 22,911.25.
Earlier this month, regulator Drugs Controller General of India (DCGI) cautioned against the consumption of Digene Gel citing safety concerns. The drug maker had voluntarily recalled several batches of the medicine manufactured at the company’s Goa facility prior to the DCGI order. Abbott said that it is implementing corrective actions at its Goa facility on September 14.
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Reuters reported that inspectors conducted four inspections at Abbott's Goa factory between August 24 and September 2 and flagged issues such as water stagnation in tanks and pipes. "This may lead to contamination and microbial growth," according to records seen by Reuters.
Also read: Implementing corrective actions at Goa unit; stopped Digene production at the facility, says Abbott
Abbott on August 18 had intimated to the DCGI office regarding voluntary product recall of all batches of Digene Gel of all flavours (Mint, Orange, mix fruits flavour) which are within the self-life and manufactured at the Goa facility. The product continues to be manufactured in the company’s plant in Baddi, Himachal Pradesh.
Digene has a 7 percent share in the market for so-called antiflatulent medicines, according to Pharmarack, which estimated annual Digene syrup sales at $11 million, with 8 million units sold, a report by Reuters said.
Also read: DCGI issues alert against Abbott’s antacid Digene gel after company initiates voluntary recall
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