Shares of Panacea Biotech experienced a sharp decline of around 5 percent during trading on October 13, following the issuance of a Form 483 with nine observations by the US Food and Drug Administration (FDA) on its biologics manufacturing plant located in Baddi.
The FDA issues observations as a response to objectionable practices detected during facility inspections. Depending on the severity of the lapses, the site may be classified as “Official Action Indicated (OAI),” preventing the company from filing or exporting any drugs from the facility. Alternatively, if the lapses are less severe, the FDA may assign a “Voluntary Action Indicated (VAI)” classification, allowing the company to continue drug filing and exporting activities.
Although the stock initially faced a significant downturn, strategic buying at lower levels helped Panacea Biotech’s shares recover slightly from their intraday low. As of 1:38 pm, the company’s shares were trading 1.16 percent lower at Rs 169.95 on the NSE.
