Bliss GVS Pharma gets paralyzed

Bliss GVS Pharma, which was buzzing in trade last week on rumours of stake sale to Pfizer and had touched a high of 41.30, seems to be under malaria attack! The Mumbai based female contraceptive, soft pessaries and suppositories maker, is down close to 3.6% at Rs. 34.90, after Ghana FDA black-listed it for selling fake and unregistered anti-malaria drugs in the country, along with a local company there named Tobinco Pharma.

Company has accepted the drug regulator’s claims and admitted to not conducting clinical trials and ascertaining the efficacy and safety of the ant-malaria drug. Thus, it will not be allowed to sell any of its products in the $ 300 million Ghana market with immediate effect.

While the financial impact of this is unknown, but exports to 60 African and Asian countries accounted for 95% of the company’s Rs. 400 crore topline. Share price is down by over 20% in a week and company has lost Rs. 65 crore in market cap, which currently stands at Rs. 357 crore.