Why This Ashish Dhawan-Backed Pharma Stock Is Tanking Today

Shares of Glenmark Pharmaceuticals tanked on Thursday after the U.S. Food and Drug Administration issued a warning to one of its plants in the US.

What Happened? The U.S. FDA gave Glenmark an Official Action Indicated (OAI) status for its Monroe facility in North Carolina after an inspection across two months.

The warning is given to a firm when used when regulatory agencies find important rule violations during their inspections or investigations.

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“The company had done a voluntary recall of all its products from this site in August 2021 and since then has not been commercialising any product from this site,” the Mumbai-based firm said in a filing with the exchanges. “Hence, the warning letter will have no impact on the existing revenues.”

The notice comes at a time when top Indian pharmaceutical companies, including giants like Sun PharmaCipla, and Lupin, have come under scrutiny from the US FDA for lapses in the manufacturing of exported drugs.

Price Action: Glenmark shares had sunk 2.17% to ₹629.10 around noon on Thursday. As per the latest shareholding data, pro investor Ashish Dhawan holds a 2.55% stake in the firm.

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Posted In: RegulationsHealth CareMoversTrading IdeasGeneralAshish DhawanGlenmark Pharmaceuticals