Drug maker Orchid Chemicals & Pharmaceuticals on Monday announced that U. S. health regulator Food & Drug Administration (FDA) approved its Irungattukottai, Chennai-based oral formulations facility.

Orchid revealed that the U. S. health regulator inspected its facility and approved it without any observations.

In a filing to the Bombay Stock Exchange (BSE), Orchid said, "We wish to inform that Orchid's Oral Formulations facility at Irungattukottai near Chennai was successfully inspected and accepted by the USFDA without any observations."

The announcement cheered investors. Stock in Orchid Chemicals & Pharmaceuticals gained 9.92 per cent to close at Rs 52.65 a share on Monday.

The formulations facility produces various sorts of dosage forms, ranging from capsules to oral tablets, in various dosage strengths.

Debt-laden Orchid Chemicals also announced that it suffered a massive net loss of Rs 132.27 crore in the three months ended March 2013, against a net profit of Rs 20.55 crore in the corresponding three months of 2012. Revenues slipped 45.36 per cent from Rs 490.78 crore to Rs 268.15 crore.