Dear All,
Forwarding you the News Flash on Aurobindo Pharma.
Aurobindo Pharma update on USFDA Inspection
With regards to the update on the USFDA action on Unit VI, Aurobindo Pharma (APL) has indicated that it has received the warning letter from USFDA detailing their observations. Also based on a field alert report for packaging and labeling compliance for Unit III, the USFDA has asked for submission of a detailed action plan for improvement in this letter which is required to be submitted within 15 working days and has also given the opportunity to APL for a regulatory meeting. Unit III contributes approximately US$140 million to the total sales of the company. Even in the worst case scenario the stock would be fairly valued at these levels. APL is requesting USFDA for the meeting date as well as is in the process of submitting a detailed action plan. Although this is a move towards the much awaited clarity needed on the USFDA ban, there is still nothing concrete that can be inferred from the same. In terms of the developments for Unit III, we believe that there packaging compliance issues which have a high probability of getting resolved. Hence, we currently maintain our estimates and recommend buy on the stock with a target price of `278.
If you have any further queries, feel free to call us on 022 39357600, Extn: 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6865
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
No comments:
Post a Comment