Shares of Aurobindo Pharma are trading in the green on Monday, August 24, after the company informed stock exchanges that the US Food and Drug Administration (US FDA) had completed a routine inspection at its wholly owned step-down subsidiary Lannett Company LLC's manufacturing facility in Seymour, Indiana.
The inspection was conducted between August 17 and August 21, according to the company's regulatory filing. Aurobindo Pharma said the inspection concluded with four observations, which it described as procedural in nature.
Stock Price Movement
The stock gained around 0.44% on Monday, around 11:28 am, rising to Rs 1,628.40 apiece on the National Stock Exchange, against its previous close at Rs 1,621.3.
Having said that, the stock has rallied over 36% in 2026, and close to 59% in the past year.
In the past month itself, the stock has delivered a return of over 6.16%.
Currently, the stock is trading at a price-to-earnings multiple of 25.14 times, with a market cap of Rs 93,729.06 crore.
FDA Inspection At Lannett Facility
Lannett Company LLC is a wholly owned step-down subsidiary of Aurobindo Pharma's US arm, Aurobindo Pharma USA, Inc. The Seymour facility was subject to the routine US FDA inspection between Aug. 17 and Aug. 21, a five-day period.
The company said it will respond to the US FDA on the observations within the stipulated timeline. The filing did not provide further details on the nature of the four procedural observations.
However, stated that the company remains committed to maintaining robust quality and compliance standards across its manufacturing facilities.
The company also said it would keep the stock exchanges informed of any further developments related to the inspection, as required under applicable regulations.
The latest disclosure comes as investors assess the regulatory outcome at Lannett's Seymour facility. With the company characterising the four observations as procedural, the next update from Aurobindo Pharma will be watched for details on its response to the US FDA and any subsequent developments.
Also Read: Aurobindo Pharma Q1 Results: Profit Jumps 25%, Revenue Rises To Rs 9,150 Crore; Margins Improve
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