On Monday, March 17, 2008, the stock price of Orchid Chemicals & Pharmaceuticals Ltd fell by 39.09% to end at Rs 127.05.

Commenting on this, the company spokesperson stated that a combination of macro factors and market rumors contributed to the sudden negative sentiment on the stock. The trigger was the sale of a stake held by a major institution liquidating its position in many companies together with the margin call on a particular portion of the promoters’ stock which was funded. As a result, the promoters’ holding fell by 7.9%, creating further pressures on the stock price.

The Company reaffirms its strong fundamentals and the robust growth plans which are on track and would like to put to rest speculative rumors that have been floating in the markets. The Company is committed to delivering strong growth quarter-over-quarter based on the product approvals and subsequent launches planned in the regulated markets.