Sharon Bio-Medicine is currently not supplying to the US markets because it is yet to receive the US certification for the plant.
According to Mr. Mohan, USFDA has been frequenting the company for the inspection of its plants. The USFDA inspected the company’s Dehradun plant in August this year and hopes to get the certification at the earliest, preferably this month. The company’s Taloja plant was also recently inspected, and Sharon Bio-Medicine is still waiting for the results of the Inspection from the USFDA.
Sharon Bio-Medicine is currently not supplying to the US markets because it is yet to receive the US certification for the plant. Nevertheless, the total market size of the product is around $150 million. The company is trying to get around $10 million to $15 million of the total size for the US market.
The $1 million pending payment for the FDA
Mr. Mohan stated that the company is yet to make the payment that amounts to $1.1 million. He also added that Bio-Medicine plans to make the payment very soon, probably within a week's time.
The Dehradun plant
Mr. Mohan revealed that the company has already received approval for the Dehradun plant from the FDA. The firm is yet to start manufacturing and commercial sales in the United States because it is yet to receive certification but once it does, it will have the tier for the US market. So the supply of the product to the US market will be initiated very soon.
The company is expected to boost its revenue margins through the launch of the product in the US. This will boost the firm’s performance. Sharon Bio-Medicine received a warning letter from the USFDA for not paying the generic drug user fee since 2013. The US regulator had threatened to block the Dehradun plant from shipping its products to the United States if the company failed to clear the fee.
Stock price movement
Sharon Bio-Medicine Ltd is currently trading at Rs. 29.7, up by Rs. 0.75 or 2.59% from its previous closing of Rs. 28.95 on the BSE.
The scrip opened at Rs. 29.4 and has touched a high and low of Rs. 30.3 and Rs. 28.8 respectively. So far 1361864(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 344.32 crore.
The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 49.55 on 15-Dec-2014 and a 52 week low of Rs. 12.45 on 06-Jul-2015. Last one week high and low of the scrip stood at Rs. 32.3 and Rs. 20.65 respectively.
The promoters holding in the company stood at 59.51 % while Institutions and Non-Institutions held 5.24 % and 35.25 % respectively.
The stock is currently trading below its 50 DMA
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