Shares of Aarti Drugs soared over 11 percent after the Directorate General of Trade Remedies (DGTR) proposed to impose anti-dumping duty on ofloxacin imports from China for five years.
In international trade, dumping happens when a country or a firm exports an item at a price lower than the product's price in its domestic market.
Ofloxacin forms 8-9 percent of Aarti Drug's total sales. At 11:26 am, shares of the company were trading at Rs 470, up 11.25 percent from the previous close on the BSE.
Aarti Drugs had filed an application for anti-dumping duty on imports of ofloxacin and its intermediates from China as, according to the firm, they were causing material injury to the domestic industry.
After completing investigations into imported ofloxacin and intermediates from China as part of Aarti Drug's application, the DGTR recommended the continuation of anti-dumping duty. Anti-dumping duty on the drug was not renewed in 2020-2021 by the government.
As per the drug firm, imports were undercutting the domestic industry's prices and causing price depression. Prices of Ofloxacin are volatile due to an increase in raw material cost and hovering around Rs 3,000-3,100 per kg.
The antibiotic ofloxacin is used to treat ulcers of the eyes, skin, prostate, and cornea.
The company told CNBC-TV18: "The anti-dumping step is expected to benefit local ofloxacin manufacturing against Chinese imports."
First Published: Aug 17, 2022 2:49 PM IST
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