HSBC sees no earnings hit from FDA action on India's Aurobindo Pharma
BUZZ-HSBC sees no earnings hit from FDA action on India's Aurobindo Pharma ** HSBC says it does not expect Aurobindo Pharma ARBN.NS to face near-term sales or earnings hit from the U.S. FDA flagging issues at its Eugia Unit 3 facility
** The company's stock is down 0.4% at 1,402.6 rupees
** The FDA last week flagged gaps in the facility's manufacturing quality standards and tagged it as 'Official Action Indicated'
** While the tag does not stop existing production, it acts as a hurdle against new drug approvals until the issues are resolved
** "There is limited dependency on Eugia 3 plant for new approvals," the brokerage said
** HSBC maintained its "buy" rating and target price of 1,580 rupees
** Nine other brokerages rate the stock "buy"; the median PT of 27 is 1,550 rupees - data compiled by LSEG
** YTD, ARBN up 18.5%
(Reporting by Abhinav Parmar in Bengaluru)
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