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Cadila Healthcare receives warning letter from USFDA
Cadila Healthcare has received warning letter from USFDA for Sarkhej site. Although this
development is negative, it is not going to impact the company’s financial performance as
the site is still not contributing to the turnover. Until all corrections have been completed
and FDA has confirmed corrections of the violations and the firm’s compliance with CGMP
is completed, FDA may withhold approval of any new applications or supplements listing
the firm as a drug product manufacturer. Management is in the process of replying and
taking the corrective steps for the same. Additionally, the other USFDA facilities were
re-inspected in January 2011 and have not received any adverse comments. Thus, given
the development, we maintain our estimates. At the CMP of `949, the stock trades at 25x
FY2012E and 18x FY2013E P/E. We recommend Accumulate on the stock with a target
price of `1,053.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Cadila Healthcare receives warning letter from USFDA
Cadila Healthcare has received warning letter from USFDA for Sarkhej site. Although this
development is negative, it is not going to impact the company’s financial performance as
the site is still not contributing to the turnover. Until all corrections have been completed
and FDA has confirmed corrections of the violations and the firm’s compliance with CGMP
is completed, FDA may withhold approval of any new applications or supplements listing
the firm as a drug product manufacturer. Management is in the process of replying and
taking the corrective steps for the same. Additionally, the other USFDA facilities were
re-inspected in January 2011 and have not received any adverse comments. Thus, given
the development, we maintain our estimates. At the CMP of `949, the stock trades at 25x
FY2012E and 18x FY2013E P/E. We recommend Accumulate on the stock with a target
price of `1,053.
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