Tanzania bans Lincoln Pharma's bacteria-fighting injection

Drug firm Lincoln Pharmaceuticals today said its highest selling Chloramphenicol Sodium Succinate injection has been banned in Tanzania and the company's registration has also been cancelled there.

Chloramphenicol Sodium Succinate Injection is an antibiotic used to treat serious bacterial infections.

"Lincoln Pharmaceuticals Ltd is exporting medicines to many African countries...One of the highest selling product is Chloramphenicol Sodium Succinate injection. Tanzania drug Authority (TFDA) has banned import of this product and company's registration has been cancelled," the company said in a regulatory filing.

It further said, "In this circumstance a huge quantity dispatched to Tanzania has (been) kept on hold there and the authority has issued a notice to destroy the product."

Reacting to the development, shares of Lincoln Pharmaceuticals declined 17.28% to trade at Rs 185.20 apiece in the morning trade on BSE.

However, the Ahmedabad-based firm did not specify the reason why its product has been banned in the African nation.

The ban "will create a big impact on its profit margin," it said.

Due to rejection of registration, a large number of raw material and packaging material stock is piled up at factory, and this adds to the loss amount, it added.