SPARC slips on delay in start of royalty from 2 new drugs

Sun Pharma Advanced Research Company fell 0.88% to Rs 337.30 at 13:44 IST on BSE after the company said it expects further delay in start of royalty income from its two new drug applications.

The announcement was made after trading hours yesterday, 31 December 2015.

Meanwhile, the BSE Sensex was up 14.28 points, or 0.05%, to 26,131.82.

On BSE, so far 44,000 shares were traded in the counter, compared with an average volume of 1.56 lakh shares in the past one quarter.

The stock hit a high of Rs 338.35 and a low of Rs 332.30 so far during the day. The stock hit a 52-week high of Rs 598 on 10 March 2015. The stock hit a 52-week low of Rs 185.80 on 1 January 2015.

The stock had underperformed the market over the past one month till 31 December 2015, falling 1.09% compared with 0.11% decline in the Sensex. The scrip had underperformed the market in past one quarter, sliding 11.43% as against Sensex's 0.14% fall.

The mid-cap company has an equity capital of Rs 23.67 crore. Face value per share is Re 1.

Sun Pharma Advanced Research Company (SPARC)'s two new drug applications (NDAs), Xelpros (an eye drop) and Elepsia XR (an anti-epileptic drug), are to be manufactured at Sun Pharmaceutical Industries' Halol plant, which has recently received a warning letter from the US food and Drug Administration (USFDA).

Consequent to above development, the management expects a possible further delay in the projected royalty income for the company from the above mentioned products, Sun Pharma Advanced Research Company (SPARC) said in a regulatory filing.

The company's management is closely monitoring the development and has initiated steps to mitigate the possible adverse impact on the company, it added.

Sun Pharma Advanced Research Company was demerged from Sun Pharma as a pharma research and drug discovery company in 2007.

Sun Pharma Advanced Research Company (SPARC) reported net loss of Rs 17.74 crore in Q2 September 2015 as against net loss of Rs 1.47 crore in Q2 September 2014. Net sales declined 6.08% to Rs 43.12 crore in Q2 September 2015 over Q2 September 2014.

SPARC is an international pharmaceutical company engaged in research and development of drugs and delivery systems.

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