Aarti Drugs hits a new low

Aarti Drugs hit a new 52-week low today at Rs.448.90 and continues to remain in the red.

The mood on almost all the pharma counters is negative because it seems as though every company, in one way or the other, is caught up on the bad side of the US FDA inspection. It not as though the FDA is after us, trying to throttle the life out of our pharma industry; the sad truth is that we do produce substandard quality products which thanks to the FDA has at least come to light. Right from Dr.Reddy’s to Natco and more, all have one issue or the other. In many ways, this is a good thing because like the clean-up of bank books, this too is a clean-up of the drugs that we also were mindlessly popping.

Coming to Aarti Drugs, the company received an import alert from the U FDA on 23rd March for two of its facilities in Tarapur. The company stated that this import alert would not affect the company’s earnings, saying that for FY15, the total US sales contributes to slightly less than 1% of the total sales volume.

The company declared a 1:1 bonus and 25th was the record date.