Lincoln Pharma tanks 20% after product ban in Tanzania
Lincoln Pharmaceuticals was locked in lower circuit of 20% at Rs 179 on the BSE after the company said thatTanzania drug authority (TFDA) has announced to stop and banned importing of Chloramphenicol Sodium Succinate Injection and also cancelled the company’s registration.
“In this circumstance a huge quantity dispatched by the company to Tanzania has kept on hold there and authority has issued a notice to destroy the product. Which will create big impact of profit margin of the company,” Lincoln Pharmaceuticals said in a statement.
And due to the rejection of registration, a large number of raw materials and packaging material stock is piled up at factory, and this creates an addition to the loss amount, it added.
Lincoln Pharma said Chloramphenicol Sodium Succinate Injection is one of the company’s highest selling products and has got many orders from the government institutes.
The trading volumes on the counter more than doubled with a combined 2.46 million shares changed hands on the BSE and NSE till 12:00 p.m. There were pending sell orders for 141,842 shares on both the exchanges so far.