Shivalik Rasayan gets 7 observations on USFDA inspection at Dahej facility
Upstox
2 min read • Updated: April 10, 2024, 1:47 PM
Summary
Shivalik Rasayan said in an exchange filing that the inspection closed successfully with only seven observations. These observations are procedural in nature and will be responded to within the stipulated time, it added. The company’s stock jumped over 5% during Wednesday morning trade.
Shivalik Rasayan company announced the completion of the United States Food and Drug Administration (USFDA) inspection at its Dahej facility. Shares jumped over 5% during Wednesday morning trade despite the seven observations.
The company said in an exchange filing that the inspection closed successfully with only seven observations. These observations are procedural in nature and will be responded to within the stipulated time, it added.
Shivalik Rasayan had recently stated that all required licenses to start manufacturing at its newly built agro-chemical plant have been received and the trial batches for P.G. Easter, Azoxystrobin and Pymetrozine have been taken successfully.
The company had reported a 22% rise in its consolidated total revenue during the third quarter of fiscal year 2024 at ₹71.73 crore. Net profit, however, fell by 35% to ₹4.34 crore during the quarter.
The pharma formulation segment witnessed the highest growth in third quarter revenues by 30.69% to ₹46.50 crore. The agrochemicals segment revenue also witnessed a decent growth during that quarter at ₹30% to ₹23.05 crore. The active pharma ingredient (API) business, however, witnessed a significant drop in revenue by over 83% at ₹68 lakh.
Shivalik Rasayan Chairman Rahul Bishnoi had stated in the company’s fiscal year 2023 (FY23) annual report that the pharmaceutical sector exhibited an exceptional growth rate of 14.9%, fuelled by surging demand for generics, exports and government support.
“As the patents for 22 pesticides are set to expire by 2030, this anticipated $4.1 billion market unveils a vast realm of opportunities for manufacturing expansion. We foresee massive potential in manufacturing these soon-to-be off-patent pesticides. Leveraging our experienced research and development (R&D) team, we aim to capture early market advantages,” he had said.
Shivalik Rasayan shares have lost close to 20% since the beginning of 2024. The stock has fallen by over 23% in the last one year.