Vivimed Labs down 20% for second straight day; hits 5-year low

The stock locked in lower circuit for the second straight day, down 20 per cent at Rs 21.25, its lowest level since August 1, 2013 on BSE.

Shares of Vivimed Labs locked in lower circuit for the second straight day, down 20 per cent at Rs 21.25 apiece, hitting an over five-year low on  BSE.

The stock of pharmaceuticals firm tanked 36 per cent in past two trading days from level of Rs 33.15 on Friday. It was trading at its lowest level since August 1, 2013.

Till 01:02 PM, a combined 1.02 million equity shares changed hands and there were pending sell orders for 2.07 million shares on the NSE and BSE so far.

On a sudden decrease in share price, Vivimed Labs clarify that presently the company is not having any such information, which requires disclosure as aforesaid.

“We do not find any justification or reason behind the sudden decrease in the price of equity shares of the company. However, we would like to once again assure our investors, shareholders and other stakeholders etc. that the fundamentals of the company remain strong and it continues to move ahead as per its laid down business plans,” Vivimed Labs said in a regulatory filing.

"We want to confirm that there is no change in the management control and growth strategy of the company and also there is no change in the Company's operating effectiveness," it added.

Vivimed is an integrated pharmaceutical company and manufactures APIs and formulations for various therapeutic areas. The company's active pharmaceutical ingredient (API) business comprises of generic/ regulatory APIs and APIs for the contract development and manufacturing organization (CDMO) segment. This constitutes 70 per cent of its total pharmaceutical business and the balance is contributed by the finished dosage formulations (FDFs) segment.

Within the FDF business, it provides contract manufacturing services to some of its marquee clients in the pharmaceuticals space, namely Novartis International AG, Glenmark Pharmaceuticals, Lupin, GlaxoSmithKline Pharmaceuticals Ltd. (GSK Pharmaceuticals), Dr. Reddy’s Laboratories, Cipla, Abbott Laboratories, Merck Serono, Wockhardt, and so on.