Vivimed Labs up sharply on strong volumes

Last Updated: Wed, Nov 30, 2016 13:26 hrs
A researcher uses a pipette to develop assay to detect specific gene of corn at a lab in Syngenta Biotech Center in Beijing

Vivimed Labs Limited shares are trading high up in positive territory despite paring some early gains. At Rs 99.60, the stock is up nearly 8% from its previous closing price.

On BSE, the Vivimed Labs counter has clocked a volume of more than 5 lakh shares so far in the session, nearly five times its average daily volume of around 1.08 lakh shares. On the National Stock Exchange, around 1.88 millon shares have been traded so far at the Vivimed Labs counter today.

The stock spurted to Rs 107.40 earlier in the day, gaining more than 16%, following an announcement from the company that its FDF manufacturing facility in Alathur, near Chennai has a favourable outcome post inspection by United States Food and Drug Administration inspection. The U.S. drug regulator conducted the audit during the last week of November.

Vivimed also announced that it has obtained abbreviated new drug application (ANDA) approval for Metronidazole and the same is now commercialised. In November 2016, the company acquired ANDA of Zolpidem and the file transfer has successfully been completed and the drug will come into the market by the fourth quarter of this financial year.

Vivimed Labs said that it is on track of its filing targets and that it has successfully completed 3 ANDA filings during the current financial year. It expects one more filing to be completed by the fourth quarter of this year. These products provide vertical integration with the in-house active pharmaceutical ingredients (APIs). The company is confident that these filings will bear fruits when these products start to commercialise over the next 18-24 months.

In the September 2016 quarter, Vivimed Labs reported consolidated net profit of Rs 26.85 crore, up 12.4% from the year-ago quarter. Net sales, however, were down more than 11% at Rs 298.36 crore.

More from Sify: