Cadila Healthcare durg unit gets US nod; shares rise

Cadila Healthcare said on Monday its manufacturing unit in Himachal Pradesh has received U.S. Food and Drug Administration's (U.S. FDA) approval and would commence supplies to the world's top drug market.

Shares of Cadila Healthcare, part of the Zydus Cadila group that also runs Zydus Wellness, rose over 2 percent after the announcement.

The plant located at Baddi town was set up in 2004 and manufactures oral solid dosage forms which include hard gelatin capsules and tablets, the Ahmedabad-based drugmaker said in a statement.

"The U.S. FDA approval for the Baddi plant enables us to open up an additional resource to cater to the growing needs of our U.S. business," Zydus Cadila Chairman and Managing Director Pankaj Patel said in a statement.

Earlier this month, Cadila said it had received a warning letter from the U.S. FDA following a pre-approval inspection of a new injectable facility in the western state of Gujarat pushing its shares down over 4 percent.

At 2:59 p.m., shares of Cadila Healthcare, which have gained 2.87 percent in value terms in three months, were trading at 1.89 percent up at 888.05 rupees in a firm Mumbai market.

(Reporting by Kaustubh Kulkarni; Editing by Sunil Nair)