Nectar Life sky rockets on receiving European cGMP nod for Cephalosporin formulations facility

Nectar Lifesciences is currently trading at Rs 18.40, up by 1.10 points or 6.36% from its previous closing of Rs 17.30 on the BSE.

The scrip opened at Rs 17.05 and has touched a high and low of Rs 18.65 and Rs 16.90 respectively. So far 66501 shares were traded on the counter.

The BSE group 'B' stock of face value Re 1 has touched a 52 week high of Rs 33.50 on 15-Apr-2011 and a 52 week low of Rs 15.25 on 16-Nov-2011.

Last one week high and low of the scrip stood at Rs 18.65 and Rs 16.90 respectively. The current market cap of the company is Rs 387.97 crore.

The promoters holding in the company stood at 44.31% while Institutions and Non-Institutions held 15.86% and 19.32% respectively.

Nectar Lifesciences (NecLife), a fast growing manufacturer of generic active pharmaceutical ingredients (APls) and formulation products has achieved another significant milestone by receiving European cGMP (Current Good Manufacturing Practices) approval for its Cephalosporin formulations manufacturing facility in Baddi, Himachal Pradesh. This approval will facilitate the company's entry into lucrative 27 European Union member states, EEU, South Africa and Middle East markets on account of mutual recognition.

After receiving EU cGMP for API facility in October 2011, NecLife has received the European cGMP compliance certification for its Cephalosporin formulations facility in Baddi for injectables Cephalosporins. This approval has been received following the successful inspection by the Hungarian Authority - National Institute for Quality and Organizational Development in Healthcare and Medicines, National Institute of Pharmacy (GYEMSZI-OGYI) in June 2011. Hungary being a member of European Union, the GYEMSZI-OGYI Certificate is accepted by all EU Health Authorities and by authorities of several other countries.

NecLife's Formulations facility, Unit-VI, has received this approval for Cefotaxime sodium for injection, Ceftriaxone sodium for injection and Cefuroxime sodium for injection. Together these 3 products have a market potential in excess of $1 billion in the European countries.

Till date, NecLife has filed 27 Drug Master Files (DMFs) and 6 Abbreviated New Drug Applications (ANDAs). The company also has an ambitious plan of filing over 20 DMFs and multiple ANDAs/EU dossiers in US and EU markets in year 2012. These filings by NecLife will result in robust topline as well as bottom-line for the company from year 2013 onwards in view of gestation period for regulatory approvals, which take significant time in view of the current pendency.

Nectar Lifesciences is a $200 million pharmaceutical organization. The company offers a range of Cephalosporin active pharmaceutical ingredients (APIs) and finished dosage forms.