Integrated global pharma company Jubilant Pharmova Ltd. is bucking the trend in Monday's trading session. This, on a day when benchmark indices have slumped over 2 percent post some hawkish commentary from Fed Chair Jerome Powell.

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The company informed the exchanges over the weekend that its subsidiary Jubilant Draximage Inc. has received the Establishment Inspection Report (EIR) with a Voluntary Action Initiated (VAI) status from the USFDA for its facility in Montreal, Canada.

The drug regulator conducted the inspection at the facility between June 6 and June 10, 2022.

"With the receipt of the EIR, the inspection stands successfully closed," the company wrote in its exchange filing.

Jubilant Pharmova has a network of radio-pharmacies in the US and it is engaged in the manufacturing and supply of allergy immunotherapy, contract manufacturing of sterile injectables among other products.

The USFDA recently completed the audit of the company's Roorkee facility, issuing six observations in the process. "The audit outcome is very good because in six of the observations, there is no observation, which is related to data fraud," Jubilant Pharma CEO Pramod Yadav mentioned during the company's earnings call on August 2. The Roorkee unit is currently under an Import Alert.

The company plans on launching at least four products in the Radiopharmaceutical manufacturing business. It plans on launching one product in FY23 and three others in FY24.

For the April-June period, Jubilant Pharmova's revenue declined 11.2 percent year-on-year while profits declined 71 percent from the corresponding quarter last year. Analysts attributed the underperformance to a steep drop in Sartan prices, an unplanned plant shutdown, and no remdesivir sales.

While Nirmal Bang expects near-term demand drivers to be weak, it sees medium to long-term business catalysts for the company. "In the long term, we see the multiple ongoing capacity expansion in the CDMO business adding value post FY24," the brokerage wrote in its post-earnings note.

Shares of Jubilant Pharmova are trading 3.7 percent higher in early trading. The stock is among the top movers on the Nifty 500 index. Out of the 7 analysts tracked by Bloomberg, three have a buy recommendation while two each have a hold and sell rating respectively.

Here's a preview on what to expect from RIL's O2C business ahead of its AGM today:

First Published:Aug 29, 2022 11:59 AM IST