Glenmark Life Sciences shares in focus after closure notice issued to Ankleshwar facility

Glenmark Life Sciences informed the exchanges, in a filing on July 26, that GPCB asked the company not to carry out production activity at its facility located on Plot No. 3102/C to 3109/A and 3103, Gujarat Industrial Development Corporation (GIDC) Ankleshwar in Bharuch district.

The pollution control board issued the notice after a sample collected from the GIDC stormwater drain was found to be contaminated with high Chemical Oxygen Demand (COD) levels and other parameters.

Glenmark Life Sciences also informed the bourses that the GPCB has ordered the company to deposit an interim Environment Damage Compensation. Additionally, the company has also been asked to submit a bank guarantee of ₹15,00,000 for compliance assurance at the time of revocation.

The pharmaceutical company mentioned in the filing that over the past few weeks, there have been incessant rains in the entire Bharuch district, and the contamination in the stormwater drain sample is very likely to have been a result of the same. The company added that the order is subject to reconsideration, and it is in the process of responding to the GPCB on the matter, including any corrective or preventive measures to be taken at its end.

Glenmark Life Sciences develops and manufactures Active Pharmaceutical Ingredients (APIs). According to its website, the company works with 16 of the 20 largest generic companies globally and has 142 APIs in its portfolio.

Shares of Glenmark Life Sciences have traded upward. In a year, the stock has surged 32.52%, and in six months, it has gained 1.78% on the NSE. In a month, it has gained 2.99% and extended the rally by 1.59% in a week.

Glenmark Life Sciences Limited shares opened flat at ₹850.7 apiece on the NSE and rallied as much as 2.73% to hit an intraday high of ₹873.95 apiece. However, the stock trimmed early gains to close 2.37% higher at ₹870 apiece on the NSE.