Orchid Chemicals drops despite US FDA nod for an antibiotic

Orchid Chemicals drops despite US FDA nod for an antibiotic

Orchid Chemicals & Pharmaceuticals declined 2.41% to Rs 249.50 at 11:28 IST on BSE, despite receiving approval from the US Food and Drug Administration for its abbreviated new drug application for cefuroxime axetil tablets.

The company made this announcement during market hours today, 20 February 2008.

Meanwhile, BSE Sensex was down 342.09 points or 1.89% to 17,733.57, on weak cues from the global markets.

On BSE, 16,171 shares were traded in the counter. The scrip had an average daily volume of 5.48 lakh shares in the past one quarter.

The stock hit a high of Rs 255.80 and a low of Rs 246.10 so far during the day. The stock had a 52-week high of Rs 328 on 17 January 2008 and a 52-week low of Rs 176 on 22 August 2007.

The mid-cap scrip had outperformed the market over the past one month till 19 February 2008, gaining 6.61% compared to the Sensex’s return of 2.67%. It had also outperformed the market in the past one quarter, rising 10.72% compared to Sensex’s decline of 2.83%.

The company’s current equity is Rs 65.84 crore. Face value per share is Rs 10. The current price of Rs 249.50 discounts its Q3 December 2007 annualized EPS of Rs 32.88, by a PE multiple of 7.59.

The product is available in three dosage strengths, 125 milligram (mg), 250 mg and 500 mg. On 14 February 2008, Orchid Chemicals & Pharmaceuticals received approval from the US Food & Drug Administration (US FDA) for its abbreviated new drug application for Granisetron Hydrochloride tablets.

In January 2008, the company announced that its formulation facilities, comprising of cephalosporin and penicillin plant had received approved by the Medicines Control Council, South Africa.

In November 2007, the company received the US FDA approval for its cefpodoxime proxetil antibiotic tablets in multiple strengths.

Orchid Chemicals & Pharmaceuticals’ net profit rose 91.1% to Rs 54.12 crore on 39.4% growth in net sales to Rs 332.69 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and selling pharmaceuticals ingredients and finished dosage forms. It focuses on the cephalosporin range of antibiotics. The company exports to Asia Pacific, Europe, Middle East, South and Central America, North America and Commonwealth of Independent States (CIS) Countries.