Shares of Bengaluru-based biotech firm Biocon crashed almost 9 percent on Friday in response to the US drug regulator issuing Form 483 listing violations at its small molecule injectable plant on the outskirts in Bengaluru.
The Biocon stock plunged to Rs 341 intraday before recovering to trade at Rs 356 on the Bombay Stock Exchange (BSE) at around 3.05 pm. The share price has dropped from Rs 384 on July 31.
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The Food and Drug Administration (FDA) had listed the violations after inspecting the plant during May and June this year.
In a regulatory filing to the BSE a few days ago, the company had acknowledged the visit by the regulator. "With reference to the subject matter, we would like to inform that this USFDA was a part of the regular periodic audit for a small molecule injectible. The company has responded to the regulator with a Corrective and Prevention Action Plan and is on track to implement them in a timely manner," the July 31 filing read.
For the quarter ended June 2017, the company had reported 51 percent fall in consolidated net profit to Rs 81 crore while revenues fell 5.9 percent to Rs 934 crore.
"Financial performance was muted largely due to a combination of factors: weakening of US dollar, GST impact, and inclusion of operational and fixed costs of Malaysia (manufacturing facility). Additionally, the YoY comparison was impacted by the one-time adjustment in Q1FY17 related to IndAS migration," CMD Kiran Mazumdar-Shaw had said in a press statement.
The BSE Sensex erased morning losses and was trading 92 points higher at 32,330.