Cipla shares plummeted more than 8 percent on Thursday following a rebuke from the US health regulator for manufacturing deficiencies at its Pithampur facility in Madhya Pradesh. The stock fell 8.10 percent to Rs 1,168.60 on the BSE, hitting a low of 8.37 percent at Rs 1,165.10. Meanwhile, at the NSE, it dropped 7.63 percent to Rs 1,174.40, causing the company’s market valuation to decrease Rs 8,319.48 crore to Rs 94,344.05 crore. The trading volume for Cipla shares reached 2.83 lakh on the BSE and over 76.43 lakh at the NSE.
The US Food and Drug Administration (USFDA) sent a reprimanding letter to Cipla’s Managing Director Umang Vohra, detailing violations of Current Good Manufacturing Practice (CGMP) regulations for finished pharmaceuticals during an inspection of the Pithampur plant from February 6-17, 2023. The letter highlighted the failure to thoroughly investigate unexplained discrepancies or batch failures, leading to the adulteration of drug products.
A warning letter is issued when the US health regulator finds significant violations of its regulations, which ultimately led to the decline in Cipla’s stock shares. This latest development will undoubtedly have a substantial impact on the company’s future operations and regulatory compliance efforts.