Surya gets EDQM CEP and TEVA OK as it tries to tackle debts
The European Directorate for the Quality of Medicines (EDQM) CEP 210-140– the second Surya has received – covers cephalexin monohydrate, which is a first generation cephalosporin antibiotic used to treat respiratory and urinary tract infections.
Teva meanwhile has OKed Surya’s manufacturing facility in Banur, Punjab for the production and supply of pharmaceutical intermediates for a range of generic drug products.
Chandigarh-headquartered Surya welcomed the news, telling the Equitybulls website that: “These developments and the expected approvals from USFDA, TGA, MCA, MCC will help the company service its debt obligation.”
Financial concerns have been centre stage at Surya since the firm posted a lacklustre set of results for the nine months ended December 31, 2011. During the period net profits fell 5 per cent to INR732m despite a 23 per cent increase in revenue to INR1455.49m.
The concerns seem to have continued this year. Just two weeks ago – Surya was forced to close two active pharmaceutical ingredient (API) production plants as a result of its financial position.
At the time Surya told India’s Moneycontrol website that it had closed the plants – in Jammu and Panchkula – and reduced its employee headcount due to a “paucity of working capital.”
Surya has not said how long the closures will last, although its comments that the “Jammu plant is still under trial for production” suggests that – for that facility at least – the move may only be temporary.
Restructuring
In related news Equity Bulls reports that Surya has been referred to the Corporate Debt Restructuring Cell in Mumbai for restructuring by the State Bank of India.
The CDR cell provides firms going through financial hardship with a way of meeting obligations by decreasing interest rates and increasing the time the company has to pay its debts.
