Piramal pharma shares up by nearly 8% post USFDA inspection

Soon after the completion of US FDA inspection of its USA-based manufacturing unit, Piramal pharma shares jumped by 10 per cent in the intraday trading session on BSE on Wednesday. The company stock was trading 8.82 per cent high at ₹78.20 on BSE at 2:23 pm.

The company shares hit an intraday high of ₹79.2 after the US Food and Drugs Administration (US FDA) successfully completed the inspection of Piramal pharma's manufacturing facility located in Sellersville, USA.

The food and drugs inspecting authority also issued an Establishment Inspection Report (EIR) for the inspected manufacturing facility and concluded the inspection.

“In furtherance to the aforementioned intimation, this is to inform you that US FDA has issued an Establishment Inspection Report (EIR) for the said manufacturing facility and the inspection has now been successfully closed by the US FDA,” the company said in its stock exchange filling on Tuesday.

The company stock was trading above 9 per cent during the morning trading sessions. On a year-to-date basis, the stock has declined by more than 35 per cent year-to-date basis. 

The company shares reached to a 52-week high on of ₹201.80 per share on October 19, 2022. The company shares plunged to ₹63.13 per share on March 28, 2023.

In the previous quarter results, the pharmaceutical company recorded a ₹90 crore loss due to high operating expenses. The company had reported a net profit of ₹163 crore in the corresponding period of the previous year. Its revenue from operation soared by 11 per cent YoY basis to ₹1716 crore in Q3 FY23.

The company earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 56 per cent on an annual basis to ₹170 crore. The EBITDA margin also dropped 1,500 basis points YoY to 10 per cent.