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Analyst's corner
Tuesday 19th Jul 2011 34
Mumbai : ORCHID CHEMICALS
Reco price: Rs 249;
Target price: Rs 373
Just a few weeks after clearing an USFDA inspection, Orchid Chemicals & Pharmaceuticals’ Cephalosporin API manufacturing facility in Alathur (Chennai) has been issued a closure notice by the Tamil Nadu Pollution Control Board (TNPCB) over a non-compliance issue relating to disposal of solid waste. The Alathur facility has been manufacturing a range of oral and sterile Cephalosporin APIs (it is an antibiotic used to treat infection and inflammation) since 1994. The facility caters to developed markets such as the US, Europe and Japan. The company is in active dialogue with the TNPCB officials and is confident of resolving the issues and bringing the plant to a fully operational stage at the earliest. Maintain Buy.
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