Aarti Drugs extends recent losses

Aarti Drugs lost 1.82% to Rs 175 at 11:57 IST on BSE, with the stock extending recent slide triggered by the company's announcement that it has recently received a warning letter from the United States Food and Drug Administration.

Meanwhile, the S&P BSE Sensex was down 237.89 points or 1.21% at 19,489.38.

On BSE, 602 shares were traded in the counter as against average daily volume of 2,983 shares in the past one quarter.

The stock hit a high of Rs 175.90 and a low of Rs 172.50 so far during the day. The stock had hit a 52-week high of Rs 262 on 23 July 2013. The stock had hit a 52-week low of Rs 129.30 on 2 April 2013.

The stock had underperformed the market over the past one month till 27 September 2013, sliding 3.36% compared with the Sensex's 9.79% rise. The scrip had also underperformed the market in the past one quarter, declining 7.64% as against Sensex's 4.51% rise.

The small-cap company has equity capital of Rs 12.11 crore. Face value per share is Rs 10.

Shares of Aarti Drugs have declined 10.64% in three trading sessions from a recent high of Rs 195.85 on 25 September 2013 after the company during trading hours on 26 September 2013 said it has recently received a warning letter from US Food and Drug Administration (USFDA).

Aarti Drugs said that its USFDA site at Tarapur was inspected by the US drug regulator in October 2012. Subsequently, the company submitted its response to USFDA. The company said that it has recently received a warning letter from USFDA pertaining to some of the company's responses to the USFDA inspection which need to be further corrected. The company further said that it has already submitted an initial response to USFDA in this regard. Aarti Drugs said that it has hired a US based FDA consultant to further review the company's responses and send another detailed response by 15 October 2013. The company said that it is putting efforts to further enhance the quality systems to avoid such things in future. Aarti Drugs continues to cooperate with FDA to resolve the issues at the earliest, it said.

Aarti Drugs' net profit rose 33.3% to Rs 11.84 crore on 15.1% growth in net sales to Rs 218.59 crore in Q1 June 2013 over Q1 June 2012.

Aarti Drugs is a pharmaceutical company. The company makes generic bulk actives, advanced intermediates and specialty chemicals.

Powered by Capital Market - Live News