Ajanta Pharma pares early losses post clarification on USFDA import alert

The stock was down 4% at Rs 1,713, recovering 12% from its intra-day's low of Rs 1,527 on the BSE

Ajanta Pharma was trading 4% lower at Rs 1,713, recovering 12% from its intra-day’s low on the BSE after the company clarified that there is no import alert by the US Food and Drug Administration (FDA) and the company continue to supply to US market.

The stock of pharmaceutical company hit an intra-day low of Rs 1,527, tanked 15% from its early morning high of Rs 1,804 on the BSE after the media reports suggested that Ajanta Pharma has received import alert from USFDA for its Paithan unit at Aurangabad.

The counter has seen huge trading volumes with a combined 3.01 million representing 3.4% of total equity of Ajanta Pharma changing hands on the NSE and BSE so far.  Average sub-100,000 shares were traded daily in past two weeks on both the exchanges.

At 11:08 am; the S&P BSE Sensex was up 127 points or 0.47% at 27,244.

Meanwhile, the board of directors of Ajanta Pharma is schedule to meet today January 24, 2017, to announce unaudited (consolidated & standalone) financial results of the company for the third quarter ended December 31, 2016 (Q3).