Aurobindo Pharma shares surge 2% after Telangana API facility gets two observations from US FDA

Aurobindo Pharma shares surged 2% to their day’s high of Rs 1,236.75 on the BSE after the company announced that the United States Food and Drug Administration (FDA) completed an inspection of Unit-V, an active pharmaceutical ingredient (API) manufacturing facility of its wholly owned subsidiary, Apitoria Pharma Private Ltd.

"The United States Food and Drug Administration (US FDA) inspected Unit-V, an API manufacturing facility of Apitoria Pharma Private Limited, a wholly owned subsidiary of the company, located at Pashamylaram Village, Patancheru Mandal, Sanga Reddy District, Telangana, from December 9 to December 17, 2024," the company said in an exchange filing.

The FDA closed the inspection with two observations, described as procedural in nature. Aurobindo Pharma stated that the company will respond to these observations within the stipulated time frame.


"The inspection closed with two observations. The observations are procedural in nature and will be responded to within the stipulated time. We will keep the stock exchanges informed if there is any further information in the future," the company added.

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In Q2 FY25, Aurobindo Pharma reported an 8.6% year-on-year (YoY) rise in net profit to Rs 817 crore, driven by strong sales in Europe and growth markets. The company posted a net profit of Rs 752 crore in the corresponding quarter of the previous year. On a quarter-on-quarter (QoQ) basis, net profit declined by 11%.

Meanwhile, its revenue from operations increased by 8% YoY to Rs 7,796 crore in Q2 FY25. The earnings before interest, tax, depreciation, and amortization (EBITDA) before forex and other income rose 11.6% to Rs 1,566 crore. The EBITDA margin for the quarter increased by 65 basis points YoY to 20.1%.

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On Tuesday, Aurobindo Pharma shares closed at Rs 1,213.4, down 2.5% on the BSE, while the benchmark Sensex declined 1.3%. The stock has gained 12% so far in 2024 and 174% over the past two years, with the company’s market capitalization now at Rs 70,477 crore.

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