Marksans Pharma surges after receiving USFDA approval for drug

Marksans Pharma surged 10.49% to Rs 50.55 at 15:00 IST on BSE after USFDA granted approval for an Abbreviated New Drug Application for Metformin Hydrochloride Extended-Release (ER) Tablets USP 500mg and 750mg.

The announcement was made during market hours today, 2 May 2016.

Meanwhile, the BSE Sensex was down 158.32 points, or 0.82%, to 25,448.30.

Huge volumes were traded on the counter. On BSE, so far 25.79 lakh shares were traded in the counter, compared with an average volume of 12.34 lakh shares in the past one quarter. The stock hit a high of Rs 51.70 and low of Rs 45.20 so far during the day. The stock hit a record high of Rs 115 on 10 August 2015. The stock hit a 52-week low of Rs 33.45 on 1 March 2016. The stock had outperformed the market over the past one month till 29 April 2016, gaining 3.39% compared with Sensex's 2.84% gains. The scrip had, however, underperformed the market in past one quarter, falling 28.74% as against Sensex's 2.96% gains.

The mid-cap company has an equity capital of Rs 40.93 crore. Face value per share is Re 1.

Marksans Pharma said that the United States Food & Drug Administration (USFDA) has granted approval for an Abbreviated New Drug Application (ANDA) for Metformin Hydrochloride Extended-Release (ER) Tablets USP 500mg and 750mg.

Metformin Hydrochloride Extended-Release (ER) Tablets USP 500mg and 750mg is therapeutically equivalent to the reference listed drug Glucophage XR Extended-release Tablets 500mg and 750mg respectively of Bristol Myers Squibb (BMS). Metformin Hydrochloride ER tablets are oral anti-hyperglycemic drugs indicated as an adjunct to diet and exercise to improve glycernic control in patients with type-2 diabetes. The annual sales of the product in the US is approximately $230 million.

Marksans Pharma's consolidated net profit fell 35.3% to Rs 17.93 crore on 1.9% rise in net sales to Rs 217.41 crore in Q3 December 2015 over Q3 December 2014.

Mumbai-based Marksans Pharma is engaged in research, manufacturing and marketing of generic pharmaceutical formulation in the global market.

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