Shares of a leading pharmaceutical formulations maker fell 5.5 percent to Rs 11.10 a share after a drug regulator found a toxic substance in cough syrup and an anti-allergy syrup manufactured by the company.
At 12:55 p.m., the shares of Norris Medicines Ltd quoted at Rs 11, up 4.01 percent on the Bombay Stock Exchange from the previous closing price. The company has a market capitalization of Rs 11 crore.
The Central Drugs Standard Control Organisation (CDSCO) found that cough syrup and an anti-allergy syrup made by Norris Medicines Ltd are contaminated with toxins that have been linked to several deaths worldwide, according to Reuters which cited a government report.
The report comes months after company-made cough syrups were linked to the deaths of 141 children worldwide. The drug regulator has also found three batches of Cold Out syrup made by Fourrts (India) Laboratories contaminated with the toxins diethylene glycol(DEG) and ethylene glycol (EG), according to Reuters.
The two toxins were also found in the cough syrups that caused several deaths in Gambia, Uzbekistan, and Cameroon since the middle of last year.
H.G. Koshia, commissioner of Gujarat state’s Food and Drug Control Administration, told Reuters on Wednesday that they inspected Norris’s factory last month and ordered it to suspend production.
The operational income of Norris Medicines has slightly declined year on year, from Rs 9.44 crore in FY 22-23 to Rs 8.36 crore in FY 23-24. During the same time period, the net loss was reduced from Rs 3.26 crore to Rs 1.75 crore.
According to the latest shareholding pattern, the company promoters hold a 34.01 percent stake, while retail investors hold a 65.9 percent stake.
Norris Medicines Ltd is engaged in manufacturing Injections and Medicinal formulations.
Since the above mentioned company is classified as a penny stock, Individual investors must conduct extensive research before investing since high-return penny stocks have volatile performance, are rarely traded, and a small number of trades may result in a circuit limited.
Written by Omkar Chitnis
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