Cipla shares were trading in the red on 12 October after the USFDA (US Food and Drug Administration) inspected the company’s American facility and issued an EIR (Establishment Inspection Report).

An inspection was carried out at the company’s wholly-owned subsidiary, InvaGen Pharmaceuticals, by the USFDA in Central Islip, Long Island, New York.

The facility received the EIR on the classification of this inspection conducted with a VAI (voluntary action indicated)

According to the FDA, “Such a classification is given to those facilities that are in a minimally acceptable state of compliance with regards to current good manufacturing practice.”

Cipla shares have underperformed the benchmark Nifty 50 index with a return of over 6% in a period of one year against the 16.6% given by the benchmark.

As of 30 June, the promoters of the company hold a 33.5% stake in the company, FIIs (Foreign Institutional Investors) hold 25.5%, and DIIs (Domestic Institutional Investors) have a 24.3% stake in the company, while the rest, 16.7% stake of the company is held by the public.

At 3:30 pm, Cipla shares closed at Rs 1,159 or 1.10% below its previous close on NSE.