Strides Pharma Science gains on receiving EIR for its US facility

Strides Pharma Science rose 0.98% at Rs 390 after the company announced successful closure of the US drug regulator's inspection at its manufacturing site in Florida, United States.

Strides Pharma Science (Strides) before trading hours today, 20 January 2020, announced that its step down subsidiary, Strides Pharma Inc. (SPI), has received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) for its facility in Riviera Beach, Florida, US.

The EIR was issued as an outcome of the USFDA's inspection of the facility in December 2019. This facility is one of the very few manufacturing facilities in the US with a soft gel capsule (SGC) manufacturing suite for formulations with containment needs.

Strides is one of the global leaders in Rx SGC with a vast portfolio of approved SGCs in the US and other regulated markets. The inspection outcome will bolster the company's fast-growing SGC franchise in the US and will also help accelerate our foray into the private label opportunity with "in market for market" products. Strides will kickstart the site transfers of its existing SGC portfolio to the site with immediate effect, the company said in a statement.

In the future, Strides plans to expand additional dosage format suites at the Florida facility, which will mirror the capabilities of its formulations facility in Singapore and will help the company to tap opportunities under various federal government procurement programs, including procurements administered by the Department of Veterans Affairs (VA).

Strides Pharma Sciences has surged 10.23% in last three months as compared to a 8.88% rise in Nifty Pharma index. The stock was trading above its 50-day placed at Rs 381.18 but below its 200-day moving average (DMA) placed at Rs 398.28. These levels will act as crucial support and resistance levels in near term.

Strides Pharma Science is a global pharmaceutical company headquartered in Bangalore, India.

On a consolidated basis, the drug maker reported a net profit of Rs 142.72 crore in Q2 September 2019 as against a net loss of Rs 12.01 crore in Q2 September 2018. Net sales rose 37.6% to Rs 715.09 crore in Q2 September 2019 over Q2 September 2018.

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