Granules India shares rise as arm concludes US FDA audit

Shares of Granules India climbed higher on March 21 after the company said that its arm,  Granules Consumer Health Inc. completed an

audit by the US Food and Drug Administration with zero observations.

At a time when regulatory scrutiny from the US FDA is on the rise, the completion of audit at Granules' subsidiary without any observation was cheered by investors.

Consequently, the stock reacted positively and at 02.15 pm, shares of Granules India were trading at Rs 287.40 on the National Stock Exchange, with gains of around 2 percent from the previous close.

Granules Consumer Health's packaging unit  in Manassas was inspected by the US FDA from March 15-20. “The audit was part of a pre-approval inspection for three products filed from the facility," the exchange filing said.

Granules Consumer Health is involved in the business of over-the-counter medicines. The company is a stepdown subsidiary of the Granules India and a wholly owned subsidiary of Granules USA, Inc.

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Shares of Granules India have declined 25.5 percent from its recent highs which was touched in November 2022 on the back of a correction in the overall pharma pack and its subdued margin performance in the December quarter.