ICICI Direct has given a buy rating to Aurobindo Pharmaceuticals with a target price of Rs 770 over 12 months. The brokerage is valuing the stock at 13 times FY22E EPS of Rs 59.4.

In a surprising example of changed fortunes, the USFDA has re-classified the inspection conducted at the company's general injectable formulation facility (Unit IV) at Pashamylaram, Hyderabad as voluntary action indicated (VAI). In February 2020, USFDA had rescinded the VAI status issued to the facility within three days of issue.

The facility had earlier received 14 observations after the inspection conducted by USFDA on November 4-13, 2019. This augurs well for the company, as it has 46 pending filings (~30 per cent of total pending filings) including 50-60 per cent of pending injectables that have been filed from this plant that is a key driver for the company's US growth.

Shares of the company declined Rs 12.15, or 1.89%, to settle  at  Rs 631.00.  The total volume of shares traded  was  501,125 at  the BSE (Thursday).