Matrix Lab slips despite US FDA nod

DALAL STREET SPIKES

US FDA approval failed to enthuse Matrix Lab counter. The stock of pharma company ended 1.62 per cent lower at Rs 166.15 after hitting the day's high of Rs 175.55. More than 2.61 lakh shares changed hands at the counter on BSE.

The company announced that it has received US FDA approval for its active pharmaceutical ingredients (APIs) manufacturing facility located at Kazipally (Unit-II), near Hyderabad. Commissioned in 2004, the facility currently manufactures anti-retrovirals (ARVs) for the treatment of HIV/ AIDS.

The approval will enable the company to supply ARV APIs to the President Bush's $15 billion PEPFAR (The President's Emergency Plan for AIDS Relief) programme, besides other regulated markets.

Market analysts said, the mood in the market is very bearish and even good stock-specific news are ignored. With the latest approval, the number of US FDA approved facilities of the company would be four, thus making it having one of the largest API manufacturing capacities in India to meet the regulatory market requirements. The company has filed cumulative 46 drug master files (DMFs) with US FDA as of March 2005.