Marksans Pharma drops over 3% as USFDA issues five observations after inspection at Goa facility

Marksans Pharma Limited shares dropped more than 3% on Thursday, April 18, after the United States Food and Drug Administration concluded the inspections of the company’s Goa facility with five observations.

The US drug regulator issued five observations after an inspection at the manufacturing facility located in Verna, Goa. The inspection was conducted from April 9 to April 17, 2024, the company informed the stock exchanges in a filing.

The USFDA inspection was a part of the routine current good manufacturing practices (cGMP) evaluation that is carried out at fixed intervals.

After the announcement, shares of Marksans Pharma dropped as much as 3.5% to a low of ₹168.5 apiece on the NSE. However, the stock recovered some of the losses to close at ₹171.7 apiece on the NSE.

Shares of Marksans Pharma have gained more than 19% in the past month and over 123% in the last one year.

Marksans Pharma informed the stock exchanges that the company is working closely with the USFDA and will address the observations from the agency within the required time.

Earlier this week, the Massachusetts Institute of Technology (MIT) acquired a 1.45% stake in Marksans Pharma. MIT purchased 66 lakh shares through a block deal in the company at ₹158 apiece.

MIT picked the stake in the pharma company through MIT Investment Management Company (MITIMCo), which supervises the investments of the premier institute’s endowment, retirement and operating funds.

Marksans Pharma is a leading Indian pharma company with global operations. The company is primarily engaged in the business of research, manufacture, marketing and sale of pharmaceutical formulations.