Shares of Suven Pharmaceuticals Ltd were trading 2% higher and hit a 52-week high of Rs 1,225 on 9 September, following positive developments regarding its subsidiary, Casper Pharma. 

The company announced that the US Food and Drug Administration (USFDA) had closed its inspection of Casper Pharma’s facility. The USFDA’s Establishment Inspection Report (EIR) confirmed that remedial actions had been initiated, providing a boost to investor confidence.

Following an inspection of a pharmaceutical company in Hyderabad, the US Food and Drug Administration (USFDA) indicates that the inspection is over by issuing an Establishment Inspection Report (EIR). 

Earlier in July, the USFDA issued Suven Pharma a Form 483 with two observations regarding Casper Pharma. However, the company stated that these were procedural in nature and that they would be promptly addressed.

During an assessment of Suven’s wholly-owned subsidiary, the formulations factory, a Casper Pharma company, the USFDA noted two procedural issues.

Suven’s sales decreased by 34% year over year in the June quarter, but its gross margins increased by 157 basis points due to a better business mix. According to the corporation, growth in the CDMO segment is anticipated in FY25 shipments during the second half.

The pharmaceutical company’s planned merger with Cohance Lifesciences made headlines earlier this year. The corporation has petitioned the NCLT Mumbai bench after receiving approvals from the stock market and SEBI. As stated in August, the company anticipates the merger to be finished within the next ten months.

However, at 1:46 pm, the shares of Suven Pharma shed all their early gains and were trading 0.96% lower at Rs 1,189.60 on NSE.

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