Cipla shares fall over 8 pc; market cap declines by Rs 8,319 crore

Shares of Cipla plunged over 8 per cent on Thursday after the US health regulator pulled up the drug major for various manufacturing lapses at its Pithampur (Madhya Pradesh) based manufacturing facility. The stock tanked 8.10 per cent to Rs 1,168.60 on the BSE. During the day, it dropped 8.37 per cent to Rs 1,165.10.

At the NSE, it fell 7.63 per cent to Rs 1,174.40.

The company's market valuation eroded by Rs 8,319.48 crore to Rs 94,344.05 crore.

On the traded volume front, 2.83 lakh shares of the company were traded at the BSE and over 76.43 lakh shares at the NSE during the day.

In a letter to the company's Managing Director Umang Vohra, the US Food and Drug Administration (USFDA) stated that it inspected Cipla's Pithampur-based plant in Madhya Pradesh during February 6-17, 2023.

"This warning letter summarises significant violations of Current Good Manufacturing Practice (CGMP) regulations for finished pharmaceuticals...Because your methods, facilities, or controls for manufacturing, processing, packing, or holding do not conform to CGMP, your drug products are adulterated," it noted.

A warning letter is issued when the US health regulator finds that a manufacturer has significantly violated its regulations.

"Your firm failed to thoroughly investigate any unexplained discrepancy or failure of a batch or any of its components to meet any of its specifications, whether or not the batch has already been distributed," the USFDA stated in the letter.