Shares of Glenmark Pharma slump 7% on profit booking

MUMBAI: Shares of Glenmark Pharmaceuticals Ltd on Tuesday plunged more than 7% due to profit booking. On Monday, the stock had rallied over 27% as the company launched anti-viral drug, Favipiravir, to treat mild-to-moderate levels of covid-19.

At 01:30 pm, the stock of Glenmark Pharmaceuticals traded at ₹487.05, down 6.30% from its previous close, while the benchmark index, Sensex rose 0.96% to 35,246.24.

Shares of Glenmark Pharma had surged 32.18% to ₹519.80 in four sessions till Monday, from its recent closing low of ₹393.25.

On Monday, the stock had jumped 27.06% in a single trading session as the company announced the launch of antiviral drug Favipiravir, under the brand name FabiFlu. Priced at ₹103 per tablet, the prescription-based drug will be available at a maximum retail price (MRP) of ₹3,500 for a strip of 34 tablets.

Glenmark said Favipiravir is also undergoing trials in other countries to test its efficacy as a drug to cure covid-19. The company added that the approval for Favipiravir in India was granted based on "evaluation of data".

In another development on Monday, HSBC Pooled Asian Equity Fund sold 1,879,542 shares, or 0.67% equity, in Glenmark Pharma at ₹527.77 per share via bulk deal. HSBC Pooled Investment Fund through HSBC Pooled Asian Equity Fund held 3.29% stake in the drug maker as on 31 March, 2020.

On a consolidated basis, the drug maker reported a 64% rise in net profit to ₹190.74 crore due to a 5.1% increase in net sales to ₹2,638.62 crore in the December quarter, over Q3FY19.