Strides Arcolab rose 1.48%, to Rs 294.70 on getting another US FDA approval for Stavudine. A thin volume of 14,386 shares was traded on the BSE.
A recovery in the stock in June 2006 proved short-lived and it retreated later. From a peak of Rs 292 on 3 July, it slipped to Rs 253.65 by 28 July. However, the stock recovered to settle at Rs 279.35 by 11 August 2006.
At the current market price of Rs 294.70, Strides Arcolab trades at 52.71 times its Q2 June 2006 annualized unconsolidated EPS of Rs 5.59.
Strides Arcolab has received tentative approval from the United States Food and Drug Administration (US FDA) for Stavudine Capsules USP, which prevents the AIDS virus from reproducing. This is the company's second ANDA approval. The application was reviewed under the expedited review provisions of the President's Emergency Plan for Aids Relief.
The company has three applications under review with the US FDA under the same program, and another four in the pipeline for submission. Strides Arcolab already has six WHO pre-qualified anti-retro virals (ARV), which are supplied to more than 37 countries in Africa and Asia. The company will also partner with the Clinton Foundation to ensure availability of affordable quality generic ARVs in least developed countries.
Recently, Strides Arcolab received tentative approval from the US FDA for Nevirapine Tablets, to stop the AIDS virus from reproducing. This drug was reviewed under the expedited review provisions of the president's emergency plan for AIDS relief program.
The company has four applications under review with the US FDA under the same program, and another 4 in the pipeline for submission. It already has five WHO pre-qualified ARVs, which are supplied to more than 37 countries in Africa and Asia.
Strides Arcolab recently broadened its product supply arrangement to Europe with Australia's Mayne group. The Australian supply pact for six anti-infective products earlier covered only the US market.
According to the extended supply agreement, Strides supplies six injectable, non-cytotoxic products, which Mayne Pharma markets and distributes in the US and Europe. These products have an annual sales of over $1.1 billion.
The hospital market is only another focus area for Strides in the European market. At present, it has international supply tie-ups with Aspen of South Africa, SORM of Japan and Akorn, USA.
Strides Arcolab is among the top five softgel capsule manufacturers with 12 plants spread across the US, Mexico, Brazil and India.
Its areas of focus are the regulated markets of US, Europe, Australia, New Zealand, South Africa and Japan.
In India, the company produces oral solid dosage forms, including tablets, soft and hard gelatin capsules and injectables with a separate facility for betalactams. The oral solids plant is rated amongst the best in the country. Strides Arcolab has a markets products in 50 countries.
Strides Arcolab reported a sharp 47% fall in net profit for Q2 June 2006 to Rs 4.88 crore (Rs 9.21 crore). Net sales rose 27.2% to Rs 100.14 crore (Rs 78.72 crore).
