Mumbai, October 30, 2024 – Cipla Ltd., a leading Indian pharmaceutical company, saw its shares plunge by 5.04%, reaching an intraday low of Rs.1,403 on the NSE. This drop marks the sharpest decline among Nifty 50 companies for the day, with investors responding to ongoing regulatory concerns and market pressures.
The decline follows recent updates from the US Food and Drug Administration (USFDA), which conducted a Current Good Manufacturing Practice (cGMP) inspection at Cipla’s Pithampur manufacturing facility. The inspection, concluded earlier this year, resulted in eight observations listed in a Form 483 issued to Cipla. Although the company has committed to addressing the observations promptly, the uncertainty surrounding the outcome has led to significant selling pressure among investors.
Additionally, the broader market volatility in the Indian pharmaceutical sector has impacted Cipla’s stock. Despite analyst projections that Cipla’s diverse portfolio and international market reach should offer resilience, the unresolved USFDA issues remain a short-term risk. Analysts have advised shareholders to monitor the situation, particularly as the company works with regulatory authorities to ensure compliance.
As Cipla moves to address these regulatory hurdles, its performance on the stock market remains uncertain. Shareholders are advised to watch closely for updates on the USFDA’s inspection outcomes and Cipla’s response strategies, which will likely influence the stock’s future trajectory.
