Cipla shares fall after FDA suspends license of Patalganga unit for 10 days

Cipla shares fell more than 1% in early trading on August 17 after the Konkan Food and Drug Administration (FDA) ordered the suspension of the license granted to the company’s Patalganga production unit for 10 days. in December 2023.
The order was the result of non-compliance with good manufacturing practices at said facility under the Cosmetics and Drugs Act of 1940.
As of 9:19 a.m., Cipla shares were trading one percent lower at Rs 1,228.55 on the National Stock Exchange.
“No physical impact”

However, the company also stated that it disagreed with the decisions the FDA and the establishment made for the aforementioned suspension. Therefore, the drug manufacturer will also appeal the order to the state government. To assuage investor concerns, the company also said the suspension will not have any significant financial, operating or financial impact.
or other activities.
Meanwhile, Cipla has recently made headlines amid reports that the world’s largest private equity fund, Blackstone, is in talks to buy shares from the company’s promoters, the Hameid family.
Although the company has treated these reports as market speculation, investors are still excited about the possibility of private equity investors taking over the pharmaceutical company.
Moneycontrol also reported on August 10, citing sources, that Blackstone had submitted a non-binding offer to its LPs (limited partners) to gain control of Cipla with the family promoter. Hamied in share sale mode.
Against that backdrop, the drugmaker’s stock has rallied nearly 20% in the past month.