Strides Pharma shares hit 52-week high despite USFDA concludes inspection at Chennai unit with 2 observations

Shares of Strides Pharma Science Limited shares hit a fresh 52-week high of ₹859.95 apiece on BSE on Monday, April 8, despite the company reporting closure of an inspection by the United States Food and Drug Administration (USFDA) a facility owned by its subsidiary.

The pharma stock also touched an intraday high of ₹855 apiece on the NSE, almost its last 52-week high level of ₹855.4 touched on April 3.

In a filing to the stock exchanges, Strides Pharma Science Limited said that the USFDA has issued two observations following a routine inspection of current Good Manufacturing Practices (cGMP) at the formulations facility of its subsidiary, Strides Alathur Private Limited, located in Chennai.

The inspection by the US drug regulator was conducted during the week of April 1 to April 5, the company informed the stock exchanges.

“The inspection closed with two observations. The company will respond to these observations comprehensively to the USFDA within the stipulated time,” said Strides Pharma.

In March, Strides Pharma informed the stock exchanges about the company’s proposal to consolidate its South African business under Trinity Pharma (Proprietary) Limited, South Africa, as a strategic move towards business consolidation and operational synergy. Strides Pharma operates in South Africa through its subsidiaries Trinity Pharma (Proprietary) Ltd. (Trinity) and Strides Pharma (SA) Pty Ltd, South Africa (Strides South Africa). Under the proposed transaction, Trinity will acquire a 100% stake in Strides SA, with 60% coming from Strides Cyprus and the remaining 40% from another shareholder, through a share purchase arrangement.

Bengaluru-based Strides Pharma primarily operates eight manufacturing facilities, including five facilities approved by the USFDA and two catering to global markets outside the United States.

Shares of Strides Pharma were trading 1.45% lower at ₹845 apiece on NSE at 1:28 pm.