Shares of Aurobindo Pharma surged 5 per cent and hit a 52-week high of Rs 791 on the BSE on Thursday in the early morning deals after the company reported healthy March quarter results. That apart, early today, the company informed the exchanges that the US Food and Drug Administration (FDA) has classified the inspection of the company’s oral solids formulation manufacturing facility at New Jersey as official action indicated (OAI).
On Wednesday, the drug maker reported a 32 per cent jump in profit before tax (PBT) at Rs 1,077.51 crore for the quarter ended March 31, 2020 as compared to Rs 816.34 in the corresponding quarter of the previous year on the back of increased revenue fuelled by formulations business growth across geographies.
In Q4 FY20, the consolidated net profit stood at Rs 849.8 crore as against Rs 585.4 crore in the corresponding previous period, an on-year growth of 45.2 per cent.
Revenues from operations for the quarter under review registered 16.4 per cent growth at Rs 6,158.43 crore as compared to Rs 5,324.47 crore in the year ago period.
The management said the growth was seen across all geographies. “Diversified product basket has helped to maintain the growth momentum in core geographies like USA and Europe. The company remains focused on strengthening existing businesses, developing a differentiated & specialty product basket and regulatory compliance,” it said in a statement.
For the full year ended March 31, 2020, the PBT of the company stood at Rs 3,743.02 crore, an increase of 21 per cent over Rs 3091.35 crore in the year ago period. Revenues from operations grew by 18 per cent to Rs 23,098.5 crore in the year 2019-20 as compared to Rs 19,563.6 crore in the previous year.
Meanwhile, the USFDA had inspected AuroLife Pharma LLC’s oral solid manufacturing facility situated at Dayton, New Jersey, a wholly owned step-down subsidiary of the Company, from 13th January to 12th February 2020.
“At the end of the inspection, ‘Form 483’ has been issued with 9 observations. With respect to the mentioned inspection, we have received a letter from USFDA classifying the inspection as ‘Official Action Indicated’,” the company said in a regulatory filing. READ HERE
The Company believes that this OAI classification may not have any material impact on the existing revenues, the supplies of their US business or pipeline products at this juncture. The exclusive sales from this facility are around 2 per cent of the group turnover. The Company will work closely with the regulator to comprehensively address the issues, it added.
In the past one month, the stock of Aurobindo Pharma has rallied 25 per cent, as compared to 1 per cent rise in the S&P BSE Sensex.