USFDA concludes inspection at Hikals Bangalore facility

Hikal Limited announced having received the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for its Active Pharmaceutical Ingredient (API) unit located in Bangalore.

The inspection which was conducted in July 2019 resulted in one minor FDA Form 483 which according to the company’s press release was closed out immediately.

On a consolidated basis, the revenue for Q2FY20 came in at Rs. 321.05 crore as against Rs. 394.84 crore in the corresponding quarter last year, registering an 18.7% YoY decline. PAT for the quarter came in at Rs. 6.37 crore as against Rs24.43 crore in the corresponding quarter last year. This includes a loss of Rs. 15.40 crore. In order to capitalise on the opportunity and given the rising demand, the company is incurring capex and also investing in backward integration. Furthermore, its exclusive global supply status and new product pipeline bodes well for the company. Hikal Ltd. is in the process of launching 3-4 new products, out of which, a couple of products would be its own products. These new launches would not just improve the top-line, but also reduce the product and client concentration.

On Monday, the stock of the company closed at Rs. 123.80, up by 2.78 per cent or Rs. 3.35 per share. The intraday high is Rs. 131.90 and intra-day low is Rs. 116.50 on the BSE.