Shares of Aurobindo Pharma slumped 3% on 27 May after the company’s Telangana facility received an Official Action Indicated classification from the US Food and Drug Administration (USFDA). 

The United States Food and Drug Administration (USFDA) conducted an inspection between 22 January and 2 February of Unit III, a formulation manufacturing plant owned by Eugia Pharma Specialities Ltd., a wholly-owned subsidiary of the corporation. The facility is situated in the Sangareddy District of Telangana in Pashamylaram, Patancheru Mandal.

The USFDA concluded the inspection and categorised this facility as “Official Action Indicated (OAI)”.

Comparing the Jan-March quarter of FY24 to the same period in the previous year, the pharmaceutical giant revealed an 80% increase in consolidated net profit, from Rs 508 crore to Rs 909 crore.

During the quarter, the company’s consolidated revenue climbed by 19% to Rs 7,580 crore, up from Rs 6,473 crore in the same period the previous year.

In the previous year, EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 68% to Rs 1687 crore. The EBITDA margin for the quarter rose to 22.3% from 15.5% at the same point in the previous year.

Furthermore, the major pharmaceutical company is recalling products in the US market due to production issues, as per a USFDA Enforcement Report from earlier this month.

Aurobindo Pharma is recalling 13,605 bottles of clorazepate dipotassium tablets (3.75 mg and 7.5 mg), which are used to treat anxiety, from the American market. A recall of the affected lot has been announced by the USFDA due to “Discoloration: Dotted and yellow spots on tablets.”

At 1:01 pm, the shares of Aurobindo Pharma were trading 2.84% higher at Rs 1,199.55 on NSE.