Aurobindo Pharma share price hits 52-week high on better Q4 numbers; Credit Suisse gives target of Rs 665

According to the research house, the headline numbers are a beat, along with a good net debt reduction.

The injectable sales were quite weak in the US, down 23 percent QoQ, while it is a beat on strong gross margins and ex-US sales.

However, the sharp increase in expenses offset the benefit from gross margin. The R&D was low in FY20 but should increase in FY21, it added.

In the latest development, United States Food and Drug Administration (US FDA) issued ‘Form 483’ with 9 observations to the company's wholly owned step-down subsidiary AuroLife Pharma LLC’s oral solid manufacturing facility situated at Dayton, New Jersey.

The inspection was carried out between January 13 to February 12, 2020.

We have received a letter from USFDA classifying the inspection as Official Action Indicated (OAI), comapny said in the release.

The company believes that this OAI classification may not have any material impact on the existing revenues, the supplies of its US business or pipeline products at this juncture.

The exclusive sales from this facility is around 2 percent of the group.

At 09:19 hrs, Aurobindo Pharma was quoting at Rs 773.75, up Rs 23.10, or 3.08 percent on the BSE.