dkishore
18-03-2008, 07:29 AM
Chennai-based drug maker Orchid Chemicals & Pharmaceuticals took the brunt of Monday’s fall, losing more than 40% in a day. Sources say the beleaguered Bear Stearns had an exposure to anywhere between 5 lakh and 10 lakh shares at the counter before Monday and may have offloaded them in large numbers.
Company officials were unavailable for comment. Rumours flew thick and fast about the Orchid scrip all through the day. Some said that Sydney-based Macquarie Bank had sold its stake in Orchid, though that could not be verified independently. Macquarie owns about 45 lakh shares in Orchid.
There was also market talk that the company had sustained unforeseen foreign exchange losses. The company had however posted strong growth in the third quarter ended December. Net profit more than doubled on the back of strong sales in the US generic market, while net sales witnessed a 39% growth.
The Indian drug maker launched last year two key antibiotic drugs, Cefdinir and Cefepime, which have recorded respective sales of $7 million and $18 million last quarter.
Company officials were unavailable for comment. Rumours flew thick and fast about the Orchid scrip all through the day. Some said that Sydney-based Macquarie Bank had sold its stake in Orchid, though that could not be verified independently. Macquarie owns about 45 lakh shares in Orchid.
There was also market talk that the company had sustained unforeseen foreign exchange losses. The company had however posted strong growth in the third quarter ended December. Net profit more than doubled on the back of strong sales in the US generic market, while net sales witnessed a 39% growth.
The Indian drug maker launched last year two key antibiotic drugs, Cefdinir and Cefepime, which have recorded respective sales of $7 million and $18 million last quarter.