Transaction tax

SMS Lifesciences Advances 19% as USFDA Completes Manufacturing Unit Inspection

NEW DELHI: SMS Lifesciences soared 18.9% in early trading on Monday after the United States Food and Drug Administration (USFDA) completed an inspection of the company’s API manufacturing plant located in Sangareddy district, Telangana (Unit-I) with no sightings.

The inspection began on April 4 and ended on April 8.

The Lifesciences SMS counter hit a high of Rs 939.40 against the previous close of Rs 789.80 on BSE. The stock last traded 15% higher.

The company is involved in the manufacture, acquisition, sale, consultancy, import, export and commissioning of agents for all types of organic and inorganic chemicals, pharmaceuticals, active pharmaceutical ingredients and intermediates, according to reports.

In the third quarter of the previous financial year, the profit after tax of SMS Lifesciences registered a decline of 13.70% to Rs 2.33 crore compared to the same period a year ago.

The company’s sales increased by 36.79% to Rs 91.06 crore for the reporting period from Rs 66.57 crore in the same period a year ago.

In December 2021, SMS Lifesciences had signed a share purchase agreement and a share subscription agreement with Chemworth Inc. USA, Strategic Investor and Associates.

Under the agreement, SMS Lifesciences sold up to 10% of its stake in Mahi Drugs and raised new capital in the company through a private placement.

After the transaction, Mahi Drugs ceased to be a wholly owned subsidiary of SMS Lifesciences, but continued as a subsidiary with 60% of the issued capital.