Cipla Evaluates US FDA Form 483 Observations on Supply Partner Pharmathen

2 min read     Updated on 07 Jan 2026, 07:25 PM
scanx
Reviewed by
Suketu GScanX News Team
Overview

Cipla Ltd clarified FDA inspectional observations on supply partner Pharmathen International SA following stock exchange queries. The FDA inspection at Pharmathen's Greece facility from November 10-21, 2025, resulted in nine Form 483 observations including contamination control issues, sterile condition deficiencies, and laboratory control shortcomings. Pharmathen manufactures lanreotide injection for Cipla's US operations, and the company is evaluating the impact while shares declined 4.28% to ₹1,465.30.

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*this image is generated using AI for illustrative purposes only.

Cipla Ltd has issued a clarification regarding media reports on inspectional observations issued by the US Food and Drug Administration to its supply partner Pharmathen International SA. The pharmaceutical company received communication from stock exchanges seeking clarification on reports related to FDA inspectional observations recorded in Form 483.

Partnership and Product Details

Pharmathen serves as Cipla's supply partner and manufactures lanreotide injection for Cipla USA Inc, a wholly-owned subsidiary of the company. The Greece-based contract manufacturing organisation has partnered with Cipla to commercialise the tumour drug lanreotide in the US market.

FDA Inspection Findings

The FDA conducted an inspection at Pharmathen's manufacturing facility in Rodopi, Greece, from November 10 to November 21, 2025. Following the inspection, Pharmathen received nine inspectional observations, which became public on January 7, 2026.

Observation Category Details
Contamination Control Inadequate procedures to prevent contamination
Sterile Conditions Weak control systems to ensure sterility
Processing Areas Deficiencies in aseptic processing areas
Laboratory Controls Shortcomings including absence of appropriate procedures
Quality Assurance Failures in establishing adequate processes for purity and quality
Testing Procedures Lapses in following approved sampling plans and testing
Facility Condition Buildings used for manufacturing found in poor condition

Company Response and Impact Assessment

Cipla stated it is currently evaluating the impact of the inspectional observations and will keep stock exchanges informed of any developments that may have a material impact, in line with applicable regulatory requirements. The company emphasized that it received these details through media reports and subsequent exchange queries.

Understanding Form 483

A Form 483 represents a list of observations made during FDA inspections and is issued by FDA inspectors after completion of the inspection process. The inspector communicates and explains these observations to the supplier during the closing conference. However, Form 483 does not represent a final FDA determination regarding the facility's Good Manufacturing Practice (GMP) compliance.

After Form 483 issuance, companies receive 15 days to submit their response to the FDA, explaining steps they will take to resolve the observations.

Market Impact

Parameter Details
Closing Price ₹1,465.30
Daily Change -₹65.50
Percentage Decline -4.28%
Trading Date January 7

Shares of Cipla Ltd ended at ₹1,465.30, declining by ₹65.50 or 4.28% on the BSE on January 7, reflecting investor concerns over the regulatory observations affecting its supply partner.

Historical Stock Returns for Cipla

1 Day5 Days1 Month6 Months1 Year5 Years
-0.50%-3.35%-3.96%-3.30%-2.46%+76.71%

Cipla Shares Fall 4% After USFDA Issues Form 483 to Partner Pharmathen Facility

2 min read     Updated on 07 Jan 2026, 09:43 AM
scanx
Reviewed by
Radhika SScanX News Team
Overview

Cipla shares declined 4% following FDA's Form 483 issuance to manufacturing partner Pharmathen's Rodopi facility, highlighting nine serious cGMP compliance violations including microbiological contamination risks and data integrity concerns. The facility manufactures Lanreotide, Cipla's largest US product, raising supply chain disruption concerns among investors.

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*this image is generated using AI for illustrative purposes only.

Cipla shares declined 4.00% on Wednesday, trading at ₹1,471.50 per share, following the US Food and Drug Administration's issuance of Form 483 to Pharmathen's Rodopi facility. The regulatory action has intensified investor concerns about potential supply chain disruptions for the company's largest US market product, Lanreotide.

FDA Form 483 Observations at Rodopi Facility

The US FDA inspection at Pharmathen's Rodopi facility resulted in nine critical observations highlighting serious current Good Manufacturing Practices (cGMP) violations. The Form 483 document reveals systemic compliance deficiencies that pose significant risks to product quality and patient safety.

Key FDA Observations: Details
Microbiological Contamination: Risks involving gram-negative bacteria
Aseptic Practices: Poor aseptic processing procedures
Particulate Control: Higher particulate reject limits
Batch Quality: Rejected batches identified
OOS Investigations: Inadequate out-of-specification result investigations
Data Integrity: Potential data integrity challenges flagged
Contamination Prevention: Inadequate contamination control procedures
Sterile Conditions: Weak sterility maintenance systems
Laboratory Controls: Deficiencies in quality control procedures

Market Performance and Trading Activity

Cipla shares fell as much as 4.00% to ₹1,467.50 during Wednesday's trading session, significantly underperforming the NSE Nifty 50 Index, which declined only 0.31%. The stock's trading volume reached 1.04 times its 30-day average, indicating heightened investor activity following the regulatory disclosure.

Market Metrics: Current Status
Share Price Decline: 4.00%
Current Trading Price: ₹1,471.50
Day's Low: ₹1,467.50
Trading Volume: 1.04x 30-day average
Relative Strength Index: 62.40
Nifty 50 Performance: -0.31%

Lanreotide Revenue Risk and Partnership Impact

Pharmathen's Rodopi facility serves as the exclusive manufacturing site for Cipla's Lanreotide, which represents the company's largest product in the US pharmaceutical market. Any operational disruption at this facility could significantly impact Cipla's US revenue stream and market position in the competitive oncology segment.

Analyst Recommendations and Price Targets

Despite the current regulatory concerns, analyst sentiment remains cautiously optimistic. Out of 39 analysts tracking Cipla, 21 maintain 'buy' ratings, 10 recommend 'hold' positions, and eight suggest 'sell' ratings. The average 12-month consensus price target of ₹1,664.28 implies a potential upside of 13.40% from current levels, suggesting confidence in the company's ability to address compliance issues and maintain long-term growth prospects.

Historical Stock Returns for Cipla

1 Day5 Days1 Month6 Months1 Year5 Years
-0.50%-3.35%-3.96%-3.30%-2.46%+76.71%
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