Cipla shares jumped 10% today after THIS update from USFDA. Details here

Pharmaceutical specialty Cipla Ltd shares rallied in trading on Thursday after the US Food and Drug Administration (USFDA) granted Voluntary Action Indicated (VAI) status to its Goa facility. The stock price rose 9.88% to touch an intraday high of Rs 1,557.45.

“Pursuant to Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in addition to our notification dated 21 June 2024 regarding the regular ongoing Good Manufacturing Practice (cGMP) inspection at the company’s manufacturing facility in Goa, India between From June 10 to June 21, 2024 We are hereby notified that the US Food and Drug Administration (USFDA) in a video message dated Wednesday, October 30, 2024 (20:28 IST) has classified the above mentioned inspection as a specified voluntary action (VAI). ),” Cipla said.

The company’s facility in Goa was inspected by the US drug regulator in June this year, after which six warnings were issued.

This approval from the USFDA will now be key for Cipla’s new launches such as generic Abraxane. Abraxan is a paclitaxel-based chemotherapy drug used to treat cancer.

During the technical setup, the scrip traded higher than the 5-day, 10-day, 150-day and 200-day simple moving averages (SMAs) but lower than the 20-day, 30-day, 50-day and 100-day SMAs. The stock’s 14-day Relative Strength Index (RSI) stood at 45.75. A level below 30 is considered oversold, while a value above 70 is considered overbought.

According to BSE, the stock has a price-to-equity (P/E) ratio of 26.09 against a price-to-book (P/B) value of 4.09. Earnings per share (EPS) was 54.32 with a return on equity (ROE) of 15.68.

The scrip saw heavy trading volume today as around 3.20 lakh shares last changed hands. That number was much larger than the two-week average volume of 45,000 shares. The counter turnover was Rs 48.98 crore and the market capitalization (m-cap) was Rs 123,489.42 crore.

As of September 2024, the promoters held 30.92 per cent stake in Cipla.