Cadila Healthcare corrects over 5% in two sessions

Cadila Healthcare fell 1.39% to Rs 1,103 at 13:58 IST on BSE, extending Thursday's 4.02% fall triggered by media reports that the US drug regulator has expressed concerns over the manufacturing process at one of the company's facility.

Shares of Cadila Healthcare fell 4.02% to Rs 1,118.55 on Thursday, 31 July 2014. The stock has fallen 5.36% in two consecutive sessions from Rs 1,165.45 on 30 July 2014.

Meanwhile, the BSE Sensex was down 175.24 points, or 0.68%, to 25,719.73.

On BSE, so far 7,448 shares were traded in the counter, compared with an average volume of 19,721 shares in the past one quarter.

The stock hit a high of Rs 1,142 and a low of Rs 1,101.80 so far during the day. The stock hit a record high of Rs 1,195 on 30 July 2014. The stock hit a 52-week low of Rs 631 on 20 August 2013.

The stock had outperformed the market over the past one month till 31 July 2014, rising 4.51% compared with 1.89% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 14.29% as against Sensex's 15.51% rise.

The large-cap company has an equity capital of Rs 102.37 crore. Face value per share is Rs 5.

As per media reports, the US Food and Drug Administration (USFDA) has expressed concerns over the manufacturing process of at least one product at Cadila Healthcare's Moraiya facility in Gujarat. The USFDA reportedly communicated its concern to Cadila Healthcare in a Form 483, a letter in which the agency typically outlines violations of standard manufacturing practices, reports suggested.

Once the Form 483 is sent, the company has 15 days to respond before the FDA takes any further action. The FDA inspected the Moraiya plant, based in Gujarat, in the second week of July, reports added.

Cadila Healthcare's consolidated net profit rose 23.1% to Rs 240.21 crore on 24.9% increase in total income to Rs 2060.53 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours on Wednesday, 30 July 2014. The stock had gained 3.22% to settle at Rs 1165.45 on Wednesday, 30 July 2014.

Cadila Healthcare said that sales growth was buoyed by the company's formulations business in US, which grew by 88% in Q1 June 2014. During the quarter, the group filed 26 additional ANDAs (abbreviated new drug applications) with the US Food and Drug Administration and launched 4 new products in the US.

The group posted a growth of 19% with 12 new product launches in the different emerging markets during the quarter. In the domestic formulations market, the company launched 19 new products, including line extensions, of which 6 products were the first to be launched in India.

Cadila Healthcare is a global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare therapies.

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