Natco Pharma, a mid-size pharmaceutical company, clarified Thursday the US Food and Drug Administration (USFDA) has classified the company's Kothur formulation facility as acceptable following inspection in May.

Natco has received a letter dated Jul. 14, 2014 from the USFDA after completing review of the Establishment Inspection Report (EIR) for the inspection conducted from May 19 to 23, 2014.

The company has made proposed commitments and corrective actions based on the minor and routine observations during inspection. 'We continue to manufacture and sell products in the US. We strongly deny all adverse speculations against the company,' the company said.

Shares of the company declined Rs 26.9, or 1.76%, to trade at Rs 1,500.30. The total volume of shares traded was 16,024 at the BSE (10.01 a.m., Thursday).