Aarti Drugs share price rises 11% amid buzz over anti-dumping duty on Ofloxacin imports from China

Aarti Drugs share price on Wednesday jumped over 11 per cent amid buzz that the government could impose anti-dumping duty on Ofloxacin and intermediates imported from China.

According to a Zee Business report, the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry has proposed to impose a levy of $0.53 to $7 per kg for the next 5 years on Ofloxacin and intermediates imported from China.

Ofloxacin is an antibiotic used to treat ulcers of the eyes, skin, prostate and corneal.

The DGTR's proposal came after the completion of a probe sought by Aarti Drugs, according to the report. There is a possibility that the decision could have an adverse impact on other big pharmaceutical companies as even import Ofloxacin from China, the report said.

The final decision in this regard will be taken by the Ministry of Finance.

Impact on price

The rise in the import of Ofloxacin also pushed up the input cost. As a result, the APIs became expensive. The price of a strip of generic medicine, which was around Rs 13, increased by 20-30 per cent.

Aarti Drugs and some MSMEs (Micro, Small and Medium Enterprises) manufacture Ofloxacin and intermediates. Many companies have also come forward showing interest in the government's PLI and API schemes.