Aurobindo Pharma shares fall 9%, what is the reason?

Aurobindo Pharma shares fall 9%, what is the reason?

Shares of Aurobindo Pharma fell 9 percent on Thursday. Earlier, it was reported that US regulator USFDA has received 14 observations at Aurobindo Pharma's Hyderabad facility. The USFDA has issued "Form 483" for this unit of Aurobindo Pharma.

Shares of Aurobindo Pharma were trading up 9.4 per cent at Rs 392.60 on the BSE at 10.05 am.

Aurobindo Pharma informed the USFDA of the investigation of its Hyderabad unit. The USFDA conducted an investigation between 4 and 13 November and took out 14 observations at the Hyderabad unit. However, in this case, the company believes that no observation will be from the data integrity issue. The company will submit its reply to the USFDA in this matter within a set time.

Earlier this week Aurobindo Pharma released its September quarter results. The net profit of the drug maker was Rs 639.5 crore in the September quarter, up 4.6 per cent year-on-year. Net profit growth has been lower due to higher expenses. The company had a net profit of Rs 611.4 crore in the same quarter last year.

In the quarter ended September 30, the company's revenue grew by 17.9 percent to Rs 5600.5 crore. At the same time, the company's expenses increased by 20 percent year-on-year to Rs 4744.5 crore.