India's Aurobindo to lose $2 million a month due to US FDA ban alert

Indian drugmaker Aurobindo Pharma (ARBN: BO), which has suffered a setback in exports to the USA after the Food and Drug Administration’s import ban alert on products manufactured at its cephalosporin facility at Chitkul village, near Hyderabad, said it may incur a revenue loss to the extent of $2 million per month till the issue remains unresolved, reports the Economic Times of India.

"Our sales may be affected by $2 million per month as long as this issue is not resolved. This is common for any pharma company. We cannot predict how long it will take (to resolve the issue). It may take some time. As per our technical advisor's estimations we can say it may take some weeks to resolve the issue," Aurobindo managing director Nityananda Reddy told the PTI news agency.

He said the products from this unit which are under transit will also be affected with the directive of US regulator. According to Mr Reddy, the company has not received any official communication from the US FDA in this regard. FDA officials audited the facility in December last year and the company has sent the compliance report to the FDA, which is under review.