UBS has maintained a Sell rating on Aurobindo Pharma, with a target price of Rs 1,333, suggesting an 8% downside from the current price of Rs 1,453.00.
The rating follows a week-long inspection of Aurobindo Pharma’s API Unit 2 by the US FDA, which resulted in 10 observations. The observations included shared equipment integrity issues, training inadequacies, and quality team reviews. Specific concerns highlighted were scratch marks and residue build-up on equipment, inadequate production records, microbial growth assessment deficiencies, and equipment cleaning protocols.
If there are no integrity issues, the company may avoid adverse regulatory actions.
Disclaimer: The information provided is for informational purposes only and should not be considered as investment advice. Always consult a financial advisor before making any investment decisions.
