Torrent Pharma down nearly 7% after USFDA sends warning letter for Gujarat facility

Torrent Pharma slipped nearly 7% in the early trading hours of Thursday as the pharmaceutical giant informed the bourses that it has received a warning letter from USFDA for its Indrad facility in Gujarat.

"Company has today received a warning letter dated 08-Oct-19 from the USFDA for its Indrad facility in Gujarat," the BSE filing read.

Torrent Pharma stock opened in the red, down 5.17% today against the last close of Rs 1,666.15. It made a gap-down chart pattern and later slipped 6.69% to the day's low of Rs 1554.65. Torrent Pharma stock has underperformed the 'Pharma sector' by 1.44% post the development.

A total of 0.39 lakh shares and 8.5 lakh shares of the company changed hands on BSE and NSE respectively. The pharma stock has gained nearly 2% in the last week but has fallen over 8% year-to-date.

The pharmaceutical stock with a face value of Rs 5 trades higher than 5 and 100-day moving averages but lower than 20, 50 and 200-day moving averages. In terms of market-depth, there are 49% sellers standing against 51% buyers bidding on the stock.

This action, as per the filing, follows the earlier intimation received by Torrent Pharma from USFDA in August 2019, wherein the agency had classified its inspection as 'Official Action Indicated' (OAI).

"We will be engaging with the agency and are fully committed to resolving this issue at the earliest. The company is also committed to maintaining the highest standards of compliances and quality manufacturing across all its facilities," the filing read.

It later added that the company does not believe that the warning letter will have an impact of disruption of supplies or the existing revenues from operations of this facility.

As of 1130 IST, shares of Torrent Pharma traded 2.72% lower at Rs 1,623 on the BSE.

By Rupa Burman Roy

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