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CNX Pharma index, gauge of pharmaceutical companies, has plunged 6% in noon deals on the National Stock Exchange (NSE) after the sector major Sun Pharmaceutical Industries issued a profit warning.
At 12:39 PM, the CNX Pharma index was the largest loser among sectoral indices, down 6.1% or 806 points at 12,370 compared to a 0.01% rise in the CNX Nifty. Sun Pharma was down 14% at Rs 815, headed for its biggest decline since 2009. On June 26, 2009, the stock had tanked 18% in intra-day trades and 12% on a closing basis.
Shares of Sun Pharma had tanked 16% to Rs 795, their lowest level since October 2014 in intra-day trades on the NSE after the company said that its overall revenues and profits are likely to be adversely impacted in the current financial year 2015-16 (FY 2016), owing to various consolidation initiatives post merger of Ranbaxy.
Sun Pharma said in a statement post market hours on Monday that as a part of the integration process with Ranbaxy, the company expects to incur certain integration charges in order to generate long-term synergies from this merger.
As per the company's estimates, the consolidated revenues would remain flat or show a decline over FY15. The consolidated profits "may also be adversely impacted due to certain expenses/charges arising out of integration as well as remedial actions."
Lupin (down 4% at Rs 1,904), Glenmark Pharmaceuticals (lost 3% at Rs 1,053), Aurobindo Pharma (shed 2.4% at Rs 753), Dr Reddy’s Laboratories (lower by 2% at Rs 3,858) and Cipla (down 1.4% at Rs 674) were the other significant pharma losers on the NSE.
At 12:39 PM, the CNX Pharma index was the largest loser among sectoral indices, down 6.1% or 806 points at 12,370 compared to a 0.01% rise in the CNX Nifty. Sun Pharma was down 14% at Rs 815, headed for its biggest decline since 2009. On June 26, 2009, the stock had tanked 18% in intra-day trades and 12% on a closing basis.
Shares of Sun Pharma had tanked 16% to Rs 795, their lowest level since October 2014 in intra-day trades on the NSE after the company said that its overall revenues and profits are likely to be adversely impacted in the current financial year 2015-16 (FY 2016), owing to various consolidation initiatives post merger of Ranbaxy.
Sun Pharma said in a statement post market hours on Monday that as a part of the integration process with Ranbaxy, the company expects to incur certain integration charges in order to generate long-term synergies from this merger.
As per the company's estimates, the consolidated revenues would remain flat or show a decline over FY15. The consolidated profits "may also be adversely impacted due to certain expenses/charges arising out of integration as well as remedial actions."
Lupin (down 4% at Rs 1,904), Glenmark Pharmaceuticals (lost 3% at Rs 1,053), Aurobindo Pharma (shed 2.4% at Rs 753), Dr Reddy’s Laboratories (lower by 2% at Rs 3,858) and Cipla (down 1.4% at Rs 674) were the other significant pharma losers on the NSE.
