Pharma stocks tumble amid drug quality concerns

As the market reversed its trend to downside, pharma and auto stocks led the losses in Friday’s trading session. While auto stocks fell amid concerns about sales growth, the pharma stocks had to face the brunt of drug quality, triggered by suspension of ranitidine hydrochloric drug.

Solara Active Pharma Sciences declined by 4.81 per cent to close at Rs. 374.95 after the company suspended production and distribution of Ranitidine Hydrochloride drug substance due to information received from USFDA and EDQM related to presence of N-nitrosodimethylamine (NDMA) content in the drug. On the other hand, Strides Pharma dropped by 7.43per cent to close at Rs. 304.2 after the company suspended sales of ranitidine tablets in the US market until it gets clarity on next steps as would be indicated by the USFDA.

Overall other pharma stocks also fell as price control and quality of drugs pose major challenges for the pharmaceutical industry. Piramal Enterprises closed at Rs. 1726.55, down 7.13 per cent; Glenmark Pharmaceutical closed at Rs. 333.3, down by 3.73 per cent, GlaxoSmithKline Pharmaceuticals closed at Rs. 1402.1, down by 0.92 per cent; Sun Pharmaceuticals closed at Rs. 401.8, down by 2.48 per cent; Aurobindo Pharma closed at Rs. 596.75, down by 2.24 per cent; Lupin closed at Rs. 716.5, down by 1.72 per cent and Cadila Healthcare closed at Rs. 241.55, down by 1.73 per cent. The S&P BSE Healthcare index settled down by 1.55 per cent at 12692.61.