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Asian markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.77% while the Hang Seng is up 0.43%. The Shanghai Composite is trading down by 0.15%. Meanwhile, European markets finished firm in previous trading session.
Meanwhile, Indian share markets have opened the day on a flat note with positive bias. The BSE Sensex is trading higher by 60 points while the NSE Nifty is trading higher by 34 points. The BSE Mid Cap index opened up by 0.3% while BSE Small Cap index opened up by 0.6%. The rupee is trading at 68.66 to the US$.
Pharma stocks are trading mixed with Divi's Laboratories and Indoco Remedies leading the losses. As per an article in The Economic Times, Wockhardt Ltd has received a warning letter from the US Food and Drug Administration (USFDA) for violation of good manufacturing practices at the facility of its indirect subsidiary, CP Pharmaceuticals, at Wrexham in the UK.
The significant violations included non-adherence to appropriate written procedures that are designed to prevent contamination of drugs.
Reportedly, there is currently no business with the US conducted from CP Pharmaceuticals. In this regard, Wockhardt is taking steps to respond to the USFDA's warning letter within the prescribed time.
Notably, Wockhardt also faces an import ban in the US involving products from its Waluj and Chikalthana plants. Its plant in Shendra and Morton Grove (UK) are also under US regulatory scanner.
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).
Meanwhile, it was reported that Natco Pharma has received final approval from the USFDA for generic version of Budesonide capsules. It is used for the treatment of active Crohn's disease for the American market.
Reportedly, Natco and its marketing partner Alvogen plan to launch this product in the US market immediately. Currently, Perrigo Pharma International DAC sells Budesonide capsules under their brand Entocort in the US market. Entocort EC Capsules, 3 mg, and its generic versions had US sales of approximately US$370 million for twelve months ending December 2015, According to IMS Health.
Moving on to the news from stocks in power sector. As per an article in a leading financial daily, NTPC's Talcher Thermal Power Station (TTPS) notched up a record single day generation of 11.496 Million Units of electricity at 104.13% Plant Load Factor (PLF). TTPS is one of the generating units of NTPC.
Reportedly, with an installed capacity of 460 MW, the station has four units of 60 MW and two units of 110 MW each.
Notably, NTPC took over TTPS from the erstwhile Orissa State Electricity Board in 1995. Earlier, the TTPS had topped in the national ranking for Highest Capacity Utilization among all power stations of the country during 2015-16. Moreover, TTPS has led to its life enhancement and spectacular journey from 19% PLF in 1995 to a PLF of 90%+ for the last Eight years, the reports noted.
Meanwhile, it was reported that, the Ministry of New and Renewable Energy (MNRE) has done away with a crucial committee which used to approve turbine models before these could be sold. The move comes as an effort to encourage more wind turbine manufacturers to enter the Indian market. (Subscription Required)
Reportedly, the disbanded committee comprised representatives from the Indian Wind Turbine Manufacturers Association (IWTMA), the Indian Wind Producers Association (IWPA) and the MNRE-affiliated, Chennai-based National Institute of Wind Energy (NIWE).
Recently, Bhavita Nagrani, our Research analyst shared her views on how the rise of the renewables is changing the dynamics of the power industry (Subscription Required). She has also compared the costs of setting up various types of power plants in these times and how the Indian central government has been pushing hard for more renewable energy capacity.
This step by the MNRE will help remove non-tariff barriers and reduce the delays manufacturers faced in getting certification. Owing to this, the process of entering the market will become easier. Products which abide by international standards will get certification without any additional verification, the reports noted.
NTPC's share price opened the day down by 0.1%.
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