Torrent Pharma slips 3% after USFDA issues 5 observations for Indrad Unit

Torrent Pharma shares slip: Shares of pharma major Torrent Pharmaceuticals fell as much as 3.26 per cent to hit an intraday low of Rs 2,800.05 per share on Thursday. 

The fall came after the United States Food and Drug Administration (USFDA) issued a Form 483 with five observations for the Indrad unit. 

“There was no observation related to data integrity reported,” Torrent Pharma said in a statement. 

The USFDA conducted a Pre-Approval Inspection (PAI) and a good manufacturing practice (GMP) inspection at the company’s manufacturing facility in Indrad, Gujarat from June 3-12, 2024.

The company said that it will respond to the USFDA within the prescribed time-frame, and will work in close collaboration with the agency to address the observations at the earliest possible time. 

Torrent Pharmaceuticals, headquartered in Ahmedabad, is a leading multinational pharmaceutical company and a  part of the Torrent Group.

Torrent Pharma holds a prominent position in the global pharmaceutical arena, particularly excelling in therapeutic segments such as cardiovascular (CV), central nervous system (CNS), gastro-intestinal (GI), and vitamins minerals nutritionals (VMN).

Boasting a robust infrastructure, Torrent Pharma operates from eight manufacturing facilities, strategically located with seven in India and one in the United States. 

Notably, five out of these seven units are approved by the USFDA.

Torrent Pharmaceuticals operations are spread across more than 40 countries. Notably, it holds the position of being ranked number one among Indian pharmaceutical companies in key markets such as Brazil, Germany, and the Philippines.

Financial performance 

Torrent Pharma’s profit zoomed 57 per cent to Rs 449 crore in Q4Fy24, from Rs 287 crore in the same quarter a year ago (Q4FY23).

The pharma company’s revenue soared 10 per cent to Rs 2,745 crore in the March quarter of FY24, from Rs 2,452 crore in the March quarter of FY23. 

Torrent Pharma’s earnings before interest, tax, depreciation and amortisation (Ebitda), also known as operating profit, surged 21 per cent to Rs 883 crore. 

The US business revenues of the company slipped 6 per cent annually to Rs 262 crore. India revenues, on the other hand, soared 10 per cent during the same period to Rs 1,380 crore.
 

The Board recommended a final dividend of Rs 6 per share.

At 10:53 AM, shares of Torrent Pharma were trading 0.92 per cent lower at Rs 2,867.80 per share. By comparison, BSE Sensex was trading 0.28 per cent higher at 76,820.20 levels. 

US business revenues slipped 6 per cent annually to Rs 262 crore while India revenues soared 10 per cent during the same period to Rs 1,380 crore.