The US Food and Drug Administration [FDA] publishes weekly enforcement report, that contains all actions including recalls, field corrections, seizures and injunctions. Pharma majors, Dr. Reddy's Laboratories, Sun Pharma and Aurbindo Pharma are recalling their products from US markets.
Dr. Reddy's Laboratories are recalling nearly 20,000 units of cartons that contain medication for controlling the blood phenylalanine levels in adults and children.
Sun Pharma are recalling 11,061 carton units of Amphotericin B Liposome for injection used to treat fungal diseases.
Aurobindo Pharma is recalling 13,605 bottles of Chlorazepate Dipottassium Tablets [3.75 mg and 7.5 mg] which is used to treat anxiety.
Reasons for recalling:
- Dr. Reddy's Laboratories: Recalling due to defective products. [Class I recall]
- Sun Pharma: Recalling due to, the medicine might have an exposures to a temporary or medically reversible adverse health consequences or where the probability of serious health consequences are remote. [Class II recall]
- Aurobindo Pharma: Recalling due to discoloration of tablets.
Is there any effect on their fundamentals:
These companies are not fundamentally weak. These issues can be rectified by them. Recently even other pharma companies like Cipla, Glenmore and Lupin also recalled their drugs from US markets.
Moreover, there is always demand for pharma products. India is one of the major contributor for medicines in international markets. After Covid times, we could see a strong rally in pharma stocks. These companies have a good future.
But whether to buy, hold or sell the shares of these companies should be decided by the readers. I cannot recommend it. But these are just my views.
Disclaimer:
Dear readers, do your own research or consult with a SEBI registered advisor before investing in any stocks or other investment options.
Post a Comment