Biocon slips 4.5% post USFDA inspection in Malaysia unit directing delays in product approvals

Biocon Limited shares tumbled over 4.5% on Wednesday morning trade as the Biocon Sdn Bhd., a step-down subsidiary of Biocon Biologics has received a communication from the U.S. Food and Drug Administration (FDA) pursuant to its July 2023 cGMP inspection at its insulins manufacturing facility at Johor, Malaysia.

At around 11:19 AM, shares of Biocon slipped by 4.68% at Rs 242.45 per share on the BSE. 

The FDA has determined the inspection classification as “OAI” (Official Action Indicated). The OAI status may cause delay and/or withholding of pending product approvals or supplements from the facility, the company informed in a filing on Wednesday.

“We submitted a comprehensive Corrective and Preventive Action (CAPA) plan to the FDA in response to observations from the July inspection and believe we are on track to complete all actions as committed.”

The Company will continue to engage with the Agency to understand any outstanding concerns and work closely to address them expeditiously.

“We do not believe that this will have a material impact on the manufacturing and distribution of the Company’s commercial products for the US market. Biocon Biologics remains committed to bringing high-quality and affordable medicines to patients in the United States”, the company said in a statement.