Hikal sees sharp rise after the company says US FDA audit showed zero observations for Gujarat unit.

Share Market Live

NSE

Pharma company Hikal on Monday morning rose more than 5 percent from lows after announcing that US Food and Drug Administration (US FDA) inspection at Panoli, Gujarat Unit was concluded with 'Zero 483 observations’.

The unit was regulated for five days from May 8th - 12th, 2023. Speaking about the update from US regulator, Hikal Managing Director Sameer Hiremath said, "As an organization we continue to maintain an excellent track record with global regulatory agencies. This latest audit re-emphasizes our commitment towards maintaining the best in class quality, compliance and regulatory standards across our manufacturing sites". This was the third inspection at Hikal’s Panoli unit as according the company, it was audited twice in the past and now it has been successfully approved for manufacturing advanced intermediates and key starting materials.

Speaking further on the positive update, company president Manoj Mehrotra said that "This approval is in line with our diversification strategy which gives us an additional API site to service our global customer base".

Last month, the pharmaceutical company had filed a suit in Bombay HC against Baba Kalyani & Kalyani Group companies and had sought performance of obligations cast on BNK after family arrangement. Reportedly, under family arrangement, shares held by BNK (Baba Kalyani Group) had to be transferred to Hiremath Family (Hikal promoters).

In the February’s quarter three results, Hikal had posted 41.6 percent drop in net profit at Rs 26.4 cr vs Rs 45.2 cr, same quarter last year while revenue had gone up 5 percent at Rs 540.2 cr vs Rs 514.5 cr on yearly comparison.

Hikal shares were trading nearly 3 percent higher at Rs 306/sh till 11 am.

(Edited by : Vahishta Unwalla)