Glenmark Pharma corrects on profit booking

Glenmark Pharmaceuticals dropped 5.43% to Rs 491.55 on profit booking after a recent steep rise.

Shares of Glenmark Pharma surged 32.18% in the past four sessions to Rs 519.80 on Monday (22 June) from its recent closing low of Rs 393.25 on 16 June 2020.

The stock surged 27.06% in a single trading session on Monday (22 June) after the company on Saturday (20 June) launched antiviral drug Favipiravir, under the brand name FabiFlu, for the treatment of mild to moderate COVID-19 patients. Priced at Rs 103 per tablet, the prescription-based drug will be available as a 200 mg tablet at an MRP of Rs 3,500 for a strip of 34 tablets.

Glenmark said that Favipiravir is also undergoing trials in other countries to test its efficacy as a COVID-19 treatment. The company further added that the approval for favipiravir in India was granted based on "evaluation of data".

Meanwhile, HSBC Pooled Asian Equity Fund sold 18,79,542 shares, or 0.67% equity, in Glenmark Pharma at Rs 527.77 per share via bulk deal on Monday, 22 June 2020. HSBC Pooled Investment Fund through HSBC Pooled Asian Equity Fund held 3.29% stake in the drug maker as on 31 March 2020.

The stock was trading above its 50-day moving average (DMA) placed at 357.58 and its 200-day moving average (DMA) placed at 325.51.

On a consolidated basis, the drug maker reported 64% rise in net profit to Rs 190.74 crore on a 5.1% increase in net sales to Rs 2,638.62 crore in Q3 December 2019 over Q3 December 2018.

Glenmark Pharmaceuticals is a global research-led pharmaceutical company with presence across generics, specialty and over-the-counter (OTC) business with operations in over 50 countries. Glenmark's key therapy focus areas globally are respiratory, dermatology and oncology.

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