Shilpa Medicare shines after receiving EIR from USFDA

The US health regulator, USFDA has issued an Establishment Inspection Report (EIR) for Shilpa Medicare’s manufacturing facilities located at Raichur in Karnataka. The EIR has been issued to the company's Active Pharmaceutical Ingredient (API) manufacturing facility which was inspected between December 12-16, 2016. The inspection has now been closed by the USFDA.

As per the company’s management, the company had submitted a detailed corrective and preventive action (CAPA) plan to the regulator within the stipulated timelines in response to the Form 483 issued at the end of inspection. The USFDA has reviewed the CAPA and has found them acceptable.

The USFDA usually issues Form 483 when an investigator observes any possible violation of the laid-down rules.

On the financial front, Shilpa Medicare’s topline declined 8.21 per cent to Rs 184 crore in Q3FY17 on a yearly basis. Its bottomline also dropped 37 per cent to Rs 17.45 crore in Q3FY17 as compared to the same period in the previous financial year.

The share price of Shilpa Medicare increased 9.74 per cent in early trades and closed at Rs 718.65 on an intra-day basis. The share price of the company has witnessed spurt in volumes by more than 6.46 times.