Aurobindo Pharma's shares climbed over 17 percent to Rs 633 on the NSE after the drug regulator US FDA classified the company's Unit IV of Hyderabad plant as VAI (voluntary action indicated).
At 11:10 am, the stock was trading 16.46 percent higher at Rs 630 per share.
Ever since the national lockdown, the stock has been trading in an upward momentum. In fact, since March 24, the stock has soared 100 percent to its current levels.
In an exchange filing, the company said, "With regard to the inspection of Unit IV, an injectable manufacturing formulation facility of the Company, conducted between November 4 and November 13, 2019, we would like to inform that United States Food and Drug Administration (USFDA) has determined that the inspection classification of this facility is Voluntary Action Indicated (VAI)".
The Hyderabad facility of Aurobindo Pharma supplies the majority of injectables to the US market. In fact, the facility is responsible for 20 percent of sales to the US market and 10 percent to the overall sales.