The share price of GlaxoSmithKline Pharmaceuticals tanked over 10 percent intraday on February 4, hitting 3-month low of Rs 1,429.25 after the pharma major reported a consolidated net loss of Rs 661.16 crore for the December 2019 quarter, mainly on account of impact of recall of Zinetac.
The company had posted a net profit of Rs 113.67 crore for the corresponding period of the previous financial year, GlaxoSmithKline Pharmaceuticals said in a BSE filing.
Following the recent decision to initiate a global voluntary recall of ranitidine products, including Zinetac in India, the Ultimate Holding Company is continuing with investigations into the potential source of the NDMA and has initiated a comprehensive strategic review of the impact of this recall on all related assets in India, GlaxoSmithKline Pharmaceuticals said.
As part of the strategic review, during the quarter, the holding company recognised financial impairment of Rs 640.31 crore connected to the underutilisation of its manufacturing facilities and Rs 96.59 crore on account of other related assets/ cost, it added.
The company’s consolidated revenue from operations stood at Rs 778.59 crore for the quarter under consideration. It was Rs 825.35 crore for the same period a year ago.
The results were impacted due to voluntary global recall of ranitidine products, including Zinetac, and trigger-based impairment charges primarily towards manufacturing facility at Vemgal, said GlaxoSmithKline Pharmaceuticals Managing Director A Vaidheesh.
The stock witnessed a spurt in volume by more than 4.33 times and was quoting at Rs 1,478.35, down Rs 169.20, or 10.27 percent. It has touched an intraday high of Rs 1,546.95 and an intraday low of Rs 1,429.25.
News Source:- Moneycontrol