Market drifts lower on negative Asian stocks

Domestic stocks edged lower in early trade on negative Asian stocks. At 9:25 IST, the barometer index, the S&P BSE Sensex, was down 54.01 points or 0.15% at 35,635.59. The Nifty 50 index was down 17.25 points or 0.16% at 10,804.60.

The S&P BSE Mid-Cap index was up 0.15%. The S&P BSE Small-Cap index was up 0.14%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 730 shares rose and 620 shares fell. A total of 81 shares were unchanged.

Overseas, Asian stocks fell as investors assessed prospects for continuing trade tensions between US and China. US stocks climbed on Friday, 22 June 2018 following gains in Europe as OPEC's plans to boost output less than some investors had anticipated sent oil on a tear.

Back home, Biocon rose 2.47% after the company announced that has received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) for its sterile drug product manufacturing facility in Bengaluru, following the USFDA pre-approval inspection of this facility in April/ May 2018. EIR notified that the inspection stands closed. The announcement was made on Saturday, 23 June 2018.

Unichem Laboratories gained 1.55%. Unichem Laboratories clarified that it filed an Abbreviated New Drug Application (ANDA) with Para IV certification for generic Tadalafil with the US Food and Drug Administration (USFDA). Pursuant to the said filing Eli Lilly & Company and the ICOS Corporation filed an infringement suit against the company in the United States District Court for the District of New Jersey seeking to prevent the company from launching its generic Tadalafil in the United States of America. The parties then mutually negotiated a settlement of the action under which Unichem may launch its generic Tadalafil in the United States on or not before 26 March 2019. No other claims have been filed against the company.

In terms of the settlement, the company shall pay to Eli Lilly, a royalty of 5% on net sales of the product up till the expiry of the US patent, i.e. 26 April 2020. There is no other compensation or penalty payable, other than Royalty mentioned above. The announcement was made after market hours on Friday, 22 June 2018.

Symphony advanced 2.96% after the company announced that it has signed an agreement to effectively purchase 95% equity stake in Climate Technologies, Australia's leading manufacturer of cooling and heating appliances. The acquisition will be executed at a valuation range of 40-44 million Australian dollars (Rs 201 - 221 crore) depending on the achievement of FY18F EBITDA (June ended).

Further, the valuation is subject to change based on customary closing conditions. The company plans to finance the acquisition through a judicious mix of debt and internal cash accruals. Headquartered in Adelaide, South Australia, Climate Technologies manufactures and sells evaporative air coolers, ducted gas heaters, and other cooling products in Australia and USA. The announcement was made after market hours on Friday, 22 June 2018.

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