BackAarti Drugs shares slip after US FDA issues import alert on two plants
Shares open at Rs624 before touching an intra-day low of Rs558.95 on NSE
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New Delhi: Aarti Drugs on Tuesday said its two manufacturing facilities have received import alert from the US regulator, a development which could impact the company’s exports to the US market.
“Two of Aarti Drugs facilities in Tarapur have received an import alert dated 23 March 2015, as per the US Food and Drug Administration (USFDA) website," the drug firm said in a filing to the BSE.
The company, however, added that only one of the two plants is a US FDA compliant facility. “Second one, we had already delisted from the USFDA website couple of years back," it added.
Shares of the company opened at ₹ 624, before touching an intra-day low of ₹ 558.95 on the National Stock Exchange (NSE).
Aarti Drugs had fixed 25 March as the record date for the purpose of allotment of bonus shares in proportion of 1:1. One bonus equity share of ₹ 10 each fully paid-up will be issued for every existing equity share of ₹ 10 each fully paid-up held in the company.
On the import alert, the company said it had a re-inspection for the E-22 facility in August 2014, after which it has submitted four responses, the first on 14 August and the last on 15 February. “We still have to receive an official communication from US FDA on the import alert after which we can take immediate actions to rectify the same," it added.
The drug firm said the import alert would not impact the company much as US sales contribute less than 1% to the company’s total sales volume. “For the current financial year 2014-15, the total US sales contributes to slightly less than 1% of the total sales volume. Hence this shouldn’t affect our top line (revenue) and bottom line (profit) significantly," it added.
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