This trending pharma stock slipped by more than 10 per cent intraday

The shares of Shilpa Medicare plunged by more than 10 per cent after the company received a warning letter from USFDA for its Jadcherla facility situated in Telangana.

According to the company, the warning letter is assumed to cause minimum disruptions to supplies and existing revenues for the business operations of the respective facility. The company simultaneously continues to coordinate with the agency to resolve the issue as quickly as possible in order to maintain the highest standards of compliance and quality across all its manufacturing facilities.

Currently, the company has three manufacturing facilities including one formulation facility and two API facilities, all of which are approved by USFDA. Amongst these, only the facility situated in Jadcherla has received a warning letter whereas, none of them have any outstanding issues with USFDA. Since the company has a diversified portfolio and also launched products in the Indian oncology markets recently, the impact of this warning could possibly be cushioned.

For Q1FY21, the company posted net sales of Rs 222.87 crore, increasing by 38.43 per cent YoY while net profit rose significantly by 492.83 per cent YoY to Rs 86.60 crore.

Being one of the buzzing pharma stocks, Shilpa Medicare gained by nearly 93.29 per cent on a YTD basis, while it recovered by more than 120 per cent from its 52-week low of Rs 240.30 as on March 31, 2020. In the last one month, the stock slipped by around 5 per cent.

On Monday, the stock of Shilpa Medicare was seen trading at Rs 498.40, tumbling by 8.52 per cent or Rs 46.40 per share on BSE. The scrip touched an intraday low of Rs 480 per share while its 52-week high is Rs 692.45 on BSE.