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The Indian share markets witnessed some selling pressure during the afternoon session and finished below the dotted line for the fourth consecutive day. At the closing bell, the BSE Sensex closed lower by 71 points, whereas the NSE Nifty finished down by 32 points. The S&P BSE Midcap & the S&P BSE Small Cap finished down by 0.4% and 0.6% respectively. IT and capital goods stocks were under pressure. While metal and power stocks led the pack of gainers.
Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.11%, while Hong Kong's Hang Seng was off 0.08%. Shares in Japan were unchanged with the Nikkei 225 at 17862.63. European markets are mixed today. The FTSE 100 is up 0.25% while the CAC 40 gains 0.05%. The DAX is off 0.35%.
The rupee was trading at Rs 67.91 against the US$ in the afternoon session. Oil prices were trading at US$ 45.73 at the time of writing.
Lupin's US subsidiary, Gavis Pharmaceuticals LLC, was issued a nod for the Tablets USP, 5mg/300 mg, 7.5 mg/300 mg & 10 mg/300 mg from the United States Food and Drug Administration (USFDA). The Tablets are the AA rated generic equivalent of Mikart, Inc's Hydrocodone Bitartrate and Acetaminophen Tablets.
According to IMS health sales data September 2016, Hydrocodone Bitartrate and Acetaminophen Tablets USP had US sales of US$ 89.6 million.
Meanwhile, Lupin has also launched Amabelz tablets in the American market after getting approval from the USFDA. The tablets are used in prevention of postmenopausal osteoporosis which is a generic version of Amneal Pharmaceuticals' Activella tablets in the US. According to IMS MAT sales data, Activella had US sales of US$91.1 million.
Considering the pharma's regulatory distresses, are Indian pharma companies now adapting to the scrutiny by the USFDA? Bhavita Nagrani, our pharma sector analyst, shares her insights in one of our premium editions of The 5 Minute Wrap Up (Subscription required).
Moving on to the news from stocks in FMCG sector, As per an article in Business Standard, ITC's US-based arm King Maker Marketing Inc. (KMM) has ceased to be its subsidiary. KMM was into business of importing and distributing tobacco products to licensed wholesalers and retailers throughout the USA.
The company had informed earlier that it will be divesting 100% of its equity stake in KMM for an estimated consideration of US$24 million.
Notably, ITC was KMM's sole supplier of tobacco products. The subsidiary recorded net sales of US$ 32.7 million and earned a net income of US$ 0.53 million during the financial year ended 31 March 2016.
The move comes as the cigarette industry in the USA continues to be adversely impacted by long-term decline in cigarette consumption. Further, mislabeled cigarette tobaccos positioned in a lower tax bracket, non-compliant imports and Native American manufacture were also some of the issues. Increasing governmental restrictions and tobacco tax increases were further expected to impact industry growth (Subscription Required) with the threat of shift in consumer franchise to illicit, value offers, the company stated.
ITC's share price finished the day up by 0.7%.
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