Jubilant Pharma gets 'FDA'ed!

Jubilant Pharmanova is among the top five losers on the BSE; opening 7.5% lower at Rs.333.30, the stock price went down further to an intraday low at Rs.318.50, a fall of almost 11.5%. Its 52-week low is at Rs.268.80.

The market is unhappy with its Q4FY23 earnings wherein despite a modest 10% (YoY) rise in revenue at Rs.1661 crore, it went on to post a net loss at Rs.98 crore v/s net profit posted last Q4 at Rs.59.50 crore.

EBITDA margin shrunk sharply from 15.5% to 12.2%.

The company attributed the net loss in the quarter to an impairment charge of Rs 171 crore related to certain intangible assets.

What also pushed off the punters is the company saying that the USFDA, post its audit, concerned with the compliance to regulatory standards, it classified its Montreal Contract Manufacturing Organization (CMO) facility as "Official Action Indicated" (OAI).

That’s not all – FDA has put its Roorkee formulations facility also under an import alert  and its API manufacturing facility in Nanjangud has also received Voluntary Action Indicated (VAI) classification.