Suven Pharma's 52-Week High Following USFDA Closure of Casper Pharma Inspection

Suven Pharma Surges to New Heights

Shares of Suven Pharma surged to a 52-week high on September 9 after the company released a report from the US drug regulator. The report indicated that remedial action has been initiated by its subsidiary, Casper Pharma, and that the inspection has been officially closed, as confirmed by the Establishment Inspection Report (EIR) from the USFDA.

Market Reaction and Trends

Following this announcement, share prices cooled off during early trade, stabilizing near the Rs 1,188 level around 11 am, reflecting the general weakness in the broader market and benchmark indices.

• The EIR is a crucial document issued by the USFDA after inspecting pharmaceutical facilities, confirming that the inspection has been concluded.
• In July, Suven Pharma received a Form 483 from the USFDA, with two observations about Casper Pharma, which the company reportedly considered procedural in nature.

Financial Insights

In its latest financials, Suven’s revenue fell by 34% Year-on-Year, yet gross margins improved by 157 basis points due to a better business mix. The company projects that the CDMO segment will drive growth in the second half of FY25.

Future Prospects and Strategic Moves

Earlier this year, the pharma company attracted attention with its proposed merger with Cohance Lifesciences. Last August, it announced that necessary approvals had been secured from the stock exchange and SEBI, with a petition now submitted to the NCLT Mumbai bench. The merger is expected to conclude within the next 10 months.