Glenmark Pharma hits 52-week low after USFDA warning letter

Glenmark Pharmaceuticals tumbled 6.34% to Rs 295.65 after the company said it received a warning letter from the US drug regulator for its Baddi facility in Himachal Pradesh.

An inspection conducted by the US Food and Drug Administration (USFDA) between 15 to 20 April 2019 at Glenmark Pharmaceuticals' Baddi facility in Himachal Pradesh, India. The inspection was classified as 'Official Action Indicated' vide a letter by USFDA.

The USFDA has now issued a 'warning letter' to the Baddi facility. The company said it is committed to work along with USFDA to implement all the necessary corrective actions required to address the concerns raised in the letter & is in the process of preparing a detailed response to USFDA within 15 working days.

The existing manufacturing & the sale of products from this facility will not be impacted, Glenmark said. Baddi facility is expected to contribute $30 million in total sales for this fiscal year which is approx 7% of total US sales. There are no major pending approvals from this facility in the next 12 months. There will be no financial impact on the organisation on account of this development, the company added.

Meanwhile, the BSE Sensex was up 233.51 points or 0.62% at 37906.82.

Shares of Glenmark Pharmaceutical have tumbled 17.44% in a month compared to a 2.58% rise in benchmark Sensex. The stock is trading way below its 100 and 200 days simple moving averages placed at 442.31 and 540.83 respectively.

On the BSE, 39,000 shares were traded in the counter so far compared with average daily volumes of 40,000 shares in the past two weeks. The stock hit an intraday high of Rs 307.7 so far during the day. The stock has hit an intraday low of Rs 295.40, which is also a 52-week low for the counter.

On a consolidated basis, the company reported a 53.1% decline in net profit to Rs 109.31 crore in Q1 June 2019 as compared to Q1 June 2018. Net sales rose 7.2% to Rs 2283.60 crore in Q1 June 2019 as against Q1 June 2018.

Glenmark Pharmaceuticals is a research-driven, global, integrated pharmaceutical company. The company is a leading player in the discovery of new molecules both NCEs (new chemical entity) and NBEs (new biological entity).

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