Strides Arcolab gains after clarification on supply of drugs to Vietnam

Strides Arcolab rose 0.8% to Rs 464.50 at 14:14 IST on BSE after the company in a clarification said that there is no ban on the company to supply drugs to Vietnam and the company continues to export drugs to Vietnam.

The clarification was issued during trading hours today, 22 April 2014.

Meanwhile, the S&P BSE Sensex was up 18.65 points or 0.08% at 22,783.48.

On BSE, so far 72,000 shares were traded in the counter as against average daily volume of 72,423 shares in the past one quarter.

The stock was volatile. The stock rose as much as 2.21% at the day's high of Rs 471 so far during the day. The stock lost as much as 0.61% at the day's low of Rs 457.95 so far during the day.

The stock had outperformed the market over the past one month till 21 April 2014, surging 28.21% compared with the Sensex's 4.65% rise. The scrip had also outperformed the market in past one quarter, jumping 22.7% as against Sensex's 7.12% rise.

The company has equity capital of Rs 59.57 crore. Face value per share is Rs 10.

Strides Arcolab in its clarification with regard to the news article appearing in a leading financial daily wherein it was stated that Vietnam has banned 45 companies including Strides Arcolab from supplying medicines to its market (titled "Vietnam declare war on India Pharma Companies"), said that there is no ban on Strides Arcolab to supply drugs to Vietnam and the company continues to export drugs to Vietnam. Further, Vietnam is a low priority market for Strides Arcolab with sales under $200,000 per annum, the company added.

Strides Arcolab's net profit galloped 4668.3% to Rs 3525.24 crore on 58% growth in net sales to Rs 240.24 crore in Q4 December 2013 over Q4 December 2012.

Strides Arcolab is a global pharmaceutical company headquartered in Bangalore. The company develops and manufactures a wide range of IP-led niche pharmaceutical products. The company has 5 manufacturing facilities, presence in more than 75 countries in developed and emerging markets.