Solara Active Pharma Sciences slipped 3.92% to Rs 378.45 after the company said it has temporarily suspended production and distribution of ranitidine hydrochloride drug substance.
Ranitidine is a medication which decreases stomach acid production. The US drug regulator reportedly found a cancer-causing impurity called N-nitrosodimethylanine (NDMA) in some products containing ranitidine.
Solara Active Pharma Sciences said it has received request for information from US Food and Drug Administration (USFDA) and European Directorate for the Quality of Medicines (EDQM) to provide test data on NDMA content in ranitidine hydrochloride drug substance. The company is in the process of responding to the information request comprehensively by second week of October 2019. Further updates on the product will be provided post completion of the requisite tests.
Ranitidine Hydrochloride is one of the top 10 APIs contributing about 5% to the overall revenue of the company. The company said it does not foresee any significant impact on the growth trajectory of the company.
Meanwhile, the S&P BSE Sensex was down 194 points or 0.50% to 38796.01.
On the BSE, 2357 shares were traded in the counter so far compared with average daily volumes of 5951 shares in the past one quarter. The stock hit a high of Rs 396 and a low of Rs 365.1 so far during the day.
The stock hit a 52-week high of Rs 491.80 on 03 Jun 2019. The stock hit a 52-week low of Rs 257.05 on 09 Oct 2018.
On a consolidated basis, Solara Active Pharma Sciences' reported a net profit of Rs 26.52 crore in Q1 June 2019 over a net profit of Rs 2.56 crore in Q1 June 2018. Net sales rose 9% to Rs 330.17 crore in Q1 June 2019 over Q1 June 2018.
Solara Active Pharma Sciences is a active pharmaceutical ingredients company.
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