Nectar Lifesciences slumps after Mohali unit gets seven observations from EU authorities

Nectar Lifesciences was locked in 5% lower circuit at Rs 26.38 after the company said that its Punjab-based API manufacturing facility had received seven observations, following an EU regulatory inspection.

In a regulatory filing made after market hours yesterday, the company stated that its API manufacturing facility in Saidpura, Mohali, Punjab, underwent a joint inspection by the European Directorate for the Quality of Medicines & HealthCare (EDQM) and the Spanish Agency of Medicines and Medical Devices (AEMPS) to assess compliance with EuGMP standards.

Following the inspection, seven observations including four critical, were noted.

Nectar Lifesciences said that it is in the process of preparing a corrective action and preventive action (CAPA) report to address the observations. The company emphasized its commitment to quality and compliance with cGMP standards.

The European regulator will conduct a re-inspection of the facility to verify the compliance and CAPA submitted which may lead to EuGMP approval.

Nectar Lifesciences is a research-based pharmaceutical company, primarily engaged in manufacturing APIs and formulation. The company has four manufacturing facilities across Punjab and Himachal Pradesh. The company is into manufacturing Cephalosporin (oral and sterile) at its two units in Derabassi and Punjab.

The company's consolidated net profit surged to Rs 7.84 crore in the quarter ended December 2024 as against Rs 1.57 crore during the previous quarter ended December 2023. Sales rose 0.48% to Rs 454.33 crore in Q3 FY25 as compared with Q3 FY24.

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