Shares of Jubilant Pharmova witnessed a significant surge of nearly 5% on Thursday after the company announced the closure of its subsidiary’s manufacturing operations in Maryland, United States.
In an exchange filing, Jubilant Pharmova Ltd. revealed its decision to shut down the operations of Jubilant Cadista Pharmaceuticals Inc., USA, citing mounting losses as the primary reason behind this move.
The subsidiary, which is involved in the manufacturing of tablets and capsules for the U.S. market, with a capacity to serve 1.5 billion doses, is expected to cease its manufacturing operations on June 17, 2024.
According to Jubilant Pharmova, the closure came as a result of a U.S. generics market ICE of higher magnitude. There have been lapses running at Jubilant Cadista since the beginning of the 2022 Financial Year. Jubilant Pharmova overlooked compelling the information of the exact quantum of loss its subsidiary has incurred.
The decision to close down the formulation unit in Maryland forms part of Jubilant Pharmova’s strategy to optimize resources pursue more profitable opportunities and expand the current business.
As of 12:00 pm, the shares were trading 4.46% higher at ₹701.75, reflecting the market’s positive sentiment towards the company’s strategic move.
