Orchid Chemicals rallies over 8% on USFDA nod for Eszopiclone tablets

NEW DELHI: Orchid Chemicals Ltd rallied as much as 8.07 per cent in trade on Friday, after the pharma major received approval from the USFDA for its ANDA (Abbreviated New Drug Application) for Eszopiclone Tablets 1mg, 2mg and 3mg strengths, said media reports.

At 10:30 a.m.; the stock pared some of the morning gains but was still trading 5.8 per cent higher at Rs 76.05. It hit a low of Rs 75.10 and a high of Rs 77.65 in trade today.

In another news report, the Debt Recovery Tribunal (DRT) in Chennai cleared the decks for Orchid Pharma to transfer its pencillin and penems API business along with some facilities to the US-based Hospira over a $200 million deal which was announced in August, 2012.

Orchid Pharma argued the CDR proposal was duly accepted by the CDR Empowered Group, and according to which, its creditors, around 22 banks, would be getting a portion of the money they had lent while all of them were sacrificing a part of it, as it is required for the company's revival and payment of debt, added the report.