Strides Pharma Science shares jump 9% after USFDA EIR for Bengaluru facility
Strides Pharma Science shares rise sharply on Thursday after the USFDA issued an Establishment Inspection Report (EIR) for its Bengaluru facility, concluding a recent cGMP inspection. The inspection ended with five observations, which the company addressed through corrective actions. The regulatory closure offers relief after the stock’s recent weakness.
Strides Pharma Science shares experienced a 9.05% increase, reaching Rs 1,044.10 during Thursday's trading session following the successful closure of a USFDA inspection at their Bengaluru manufacturing facility. This positive outcome was announced after the US Food and Drug Administration (US FDA) issued an Establishment Inspection Report (EIR) for the facility, effectively concluding the regulatory inspection.
The inspection, conducted from May 12 to May 20, 2026, encompassed current Good Manufacturing Practices (cGMP) standards and resulted in five observations detailed in a Form 483. Strides Pharma Science submitted a comprehensive response to the observations within the required timeframe. The USFDA evaluated the company's actions and classified the inspection outcome as Voluntary Action Indicated (VAI), issuing the EIR to finalize the inspection process.
The Bengaluru facility, Strides' flagship manufacturing site, produces various pharmaceutical dosage forms and serves both domestic and international markets. The successful completion of the inspection bolsters the company's regulatory track record and emphasizes its dedication to preserving high-quality standards across its global operations.
This development comes as a relief for investors, who had previously witnessed a decline in the stock's value, with shares dropping approximately 10% over the past month and nearly 16% over the last three months. Currently, the company's market capitalization is approximately Rs 8,825 crore, with a 52-week high of Rs 1,231. On the valuation front, Strides Pharma Science trades at a price-to-earnings (P/E) ratio of 14.26, a price-to-sales ratio of 1.78, and a price-to-book ratio of 2.78.
Technically, the stock shows signs of recent weakness, as evidenced by its 14-day Relative Strength Index (RSI) of 36.3, indicating oversold conditions. However, the stock is currently trading above six of its eight key Simple Moving Averages (SMAs), with the 50-day and 100-day SMAs below the current price, suggesting that Thursday's rally may represent an attempt at recovery.
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