Views on Cipla - Gets a 483 on its Indore plant: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking)

Cipla - Gets a 483 on its Indore plant:

"The USFDA has issued a 'Form 483' to Cipla's Indore Facility, used for exporting drugs to US. According to the US regulator, Form 483 is issued to a firm's management at the conclusion of an inspection, when the investigator has observed any conditions that their judgment may constitute violations of the Food Drug and Cosmetic Act and related Acts. The FDA has reportedly highlighted 9 observations although full details are not known. It's been reported that the observations are not data integrated related and should not lead to serious consequences for the company. While the exact sales from the Indore plant are not known, US contributed around 8% of its overall sales in FY2015. As of now we are not changing our estimates. In a worst case scenario the impact on EPS will be 5-6%, assuming all sales in US are catered by Indore, which is not the case. We remain NEUTRAL on the stock."

Shares of CIPLA LTD. was last trading in BSE at Rs.672.45 as compared to the previous close of Rs. 687.1. The total number of shares traded during the day was 397362 in over 10137 trades.

The stock hit an intraday high of Rs. 688.1 and intraday low of 659.3. The net turnover during the day was Rs. 265302384.

Source : Equity Bulls

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