By Malvika Gurung
Investing.com -- Shares of the pharmaceutical company Solara Active Pharma Sciences (NS:SOLA) tanked 19.23% to Rs 626.2 apiece on Friday, extending losses to the second day, after posting weak Q3 results post-market hours on Wednesday.
It was the worst performing stock on the broadest market index Nifty 500.
The selling pressure on the counter continues after the pharma stock tanked 20% on Thursday, following a flop earnings show for the Dec 2021 quarter.
The small-cap company reported a net loss of Rs 139.8 crore in Q3 FY22, compared to a net profit of Rs 65.8 crore posted in the year-ago period.
Its consolidated revenues declined 76.5% to Rs 100 crore in Q3, on a YoY basis, led by a change in its commercial business strategy.
The company stated that it made a change in its commercial model from distribution-led to direct sales to customers in the less regulated markets, in the Dec quarter, and the effect on topline and profits is a one-time impact.
The performance was also impacted by subdued regulated market demand and higher material costs, along with increased logistics costs.
The company’s management is confident that the new business model will have significant long-term value.
Besides, Solara Active’s board approved the CEO and COO stepping down from their positions.
The stock has tumbled about 35% in the past 2 sessions, lowering about two-thirds from its 52-week high.