India's Laurus Labs hits 4-month low on weak formulations business

Laurus Labs

25/10/2022 08:33

** Shares of Indian pharma co Laurus Labs  LAUL.NS  fall as
much as 6.2% to 450 rupees, their lowest since June 23
    ** Hyderabad, Telangana-based co on Friday reported nearly
flat qtrly profit at 2.33 billion Indian rupees ($28.15 million)
 urn:newsml:reuters.com:*:nFWN31M0TF
    ** Antiretroviral (ARV) drugs formulations business
performance was very weak, impacted by lower volumes and adverse
pricing - LAUL
    ** Co also trimmed revenue guidance for FY23 to 90% of
earlier guidance at $1 bln 
    ** Potential impact from ARV formulation business due to
prolonged higher channel inventory and ongoing pricing
challenges - LAUL
    ** Shortfall on formulations appears to be getting offset by
higher revenue from the synthesis advance purchase order that
may not sustain beyond FY23 - Ambit Capital analysts said in a
note
    ** About 4.7 mln shares change hands, 4x 30-day avg of 1.2
mln shares
    ** Five out of 11 analysts tracking stock rate it at "buy"
or above; 4 "sell" or "strong sell"; 2 "hold"; media PT 550
rupees - Refinitiv data
    ** LAUL shares down 11% YTD as of last close
($1 = 82.7650 Indian rupees)
 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))