Cipla stock price (CIPLA:NSE) experienced a sharp decline in the stock market today. The pharmaceutical company’s shares opened lower and continued to drop, hitting an intraday low of ?955.25 on the National Stock Exchange in early morning trading, resulting in an intraday loss of 7 percent on Monday morning deals. Market analysts attributed the fall in Cipla stock price to the recent disclosure by the company to Indian exchanges about the results of a USFDA inspection.
According to industry experts, Cipla stock price may fall further, reaching levels as low as ?875 apiece. This prediction is based on the psychological significance of the ?1,000 mark, which the stock has now fallen below, and has remained under for over two hours.
Ravi Singhal, the CEO at GCL Broking, stated that the main reason for the decline in Cipla’s share price is the announcement made by the pharma company regarding the cGMP inspection carried out by the USFDA at its Pithampur manufacturing facility. Singhal believes that Cipla stock price is likely to remain under pressure until the outcome of the USFDA inspection is released.
In a recent exchange filing, Cipla stated, “The United States Food and Drug Administration (USFDA) conducted a current Good Manufacturing Practices (cGMP) inspection at our Pithampur manufacturing facility from 6th – 17th February, 2023. On conclusion of the inspection, the Company has received 8 inspectional observations in Form 483. The Company will work closely with the USFDA and is committed to addressing these comprehensively within the stipulated time.”
Singhal advised Cipla shareholders to hold on to their shares but suggested implementing a stop loss at ?875 levels. He also stated that bottom fishing is not advisable until the outcome of the USFDA inspection is known. Fresh investors are advised to consider other stocks as Cipla’s shares are expected to remain under pressure in the near term.
In conclusion, Cipla stock price has experienced a significant decline due to concerns raised by the USFDA inspection at its Pithampur manufacturing facility. The company has received 8 inspection observations, and Cipla has committed to addressing these comprehensively within the stipulated time. Cipla shareholders are advised to hold their shares and implement a stop loss, while fresh investors are recommended to consider alternative stocks until the outcome of the USFDA inspection is released.