Glenmark shares fall 5.8% after DCGI notice on FabiFlu overpricing1 min read . Updated: 20 Jul 2020, 11:58 AM IST
Glenmark reduced the price of FabiFlu by 27% to Rs75 per tablet last week
Shares of Glenmark Pharmaceuticals Ltd on Monday fell as much as 5.8% after India's drug regulator sent a notice to the company on overpricing and false claims of its generic version of favipiravir--FabiFlu.
The Mumbai-based drug firm reduced the price of FabiFlu by 27% to Rs75 per tablet last week for restricted emergency use in patients with mild-to-moderate symptoms of Covid-19.
“The cost proposed by Glenmark (for FabiFlu) is definitely not in the interest of the poor, lower middle class and middle class people of India," the Drug Controller General of India (DCGI) said in a letter to the company, the Mint reported on Sunday.
According to the Mint report, V.G. Somani, who heads Central Drugs Standards Control Organisation (CDSCO), has sought the clarification on the matter from Glenmark Pharmaceuticals.
The drug regulator has also pulled up the company regarding its claims of effectiveness of FabiFlu in co-morbid conditions like hypertension and diabetes, the report said.
In June, Glenmark Pharmaceuticals had received CDSCO’s permission for the emergency use authorisation for the use of FabiFlu to treat mild and moderate Covid-19 following a phase-3 randomised, open-label trial of 156 patients.
At 12:07 PM, shares of Glenmark Pharmaceuticals were trading at Rs415.80, down 3.21%, on the NSE, and at Rs415.75, down 3.30%, on the BSE.
Glenmark Pharmaceuticals reported about 8% year-on-year growth in fourth quarter revenue, due to an improvement in its domestic and European market. Its domestic revenue rose by about 14.5% in the March quarter.