Cipla bounces back by 4 per cent after drug recall

Pharma major Cipla’s US subsidiary, InvaGen Pharmaceuticals Inc. recalled 11 lots of antidepressant bupropion hydrochloride ER tablets from the US markets on April 15. The pharma company recalled the tablets as the tablets failed the dissolution specifications, according to the US health regulator, US Food and Drug Association.       
 
It was a class III recall, meaning that the drug consumption will not cause any adverse health affects. 
 
However, the impact of the negative news seemed to have been discounted and hence the share price bounced back after 9 weak sessions. The stock price of Cipla hit an intraday high of Rs. 579.50 per share, up by 4.4 per cent on BSE on Monday. The stock hit an intraday low of Rs. 550.15 per share and only traded in the positive territory.

At 1146 hours IST, the stock was trading at Rs. 575 per share, higher by 3.68 per cent on BSE on Monday. The stock had hit its 52-week high of Rs. 663 per share on November 7, 2017 and its 52-week low of Rs. 479 per share on May 26, 2017 on BSE, respectively.
 
Meanwhile, S&P BSE Sensex was trading at 34,112.91 level, lower by 0.23 per cent and NSE Nifty50 was trading at 10,466.20 level, lower by 0.14 per cent.