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Jubilant Pharmova shares will be in focus after its subsidiary Jubilant HollisterStier received communication from the US FDA for its contract manufacturing facility based in Spokane, Washington.
Following its audit of the facility from May 28 to June 6, 2024, the US FDA determined the inspection classification of the facility as “Voluntary Action Indicated”.
A VAI classification means that the US FDA has found some lapses during its inspection, but these issues are not severe enough to require immediate enforcement action. The company is therefore expected to voluntarily correct these issues to comply with regulatory standards.
Sentiment for the drugmaker has been running high since it reported a stellar set of earnings for the April-June quarter. On that account, the stock has soared over 38 percent in the past two months.
The drugmaker posted a meteoric spike in its consolidated net profit for the first quarter of FY25 at Rs 481.8 crore, heavily boosted by gains on the sale of investment in its US-based associate firm, Sofie Biosciences. Revenue also grew to Rs 1,731.7 crore in Q1 as against Rs 1,586.9 crore in the year-ago period.
Earlier this month, the company also announced plans to establish a unit, through its subsidiaries, to acquire the R&D centre of multinational pharma player Pierre Fabre in France.
This transaction will enable Jubilant Biosys to create a centre of excellence in Europe for Biologics and Antibody Drug Conjugates (ADC), tapping into a total addressable market of $500 million,” the company stated.
Jubilant Biosys, a subsidiary of Jubilant Pharmova, will invest up to €14.4 million over seven years, with €4.4 million allocated for an 80 percent stake in the new company being formed.
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