Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusiness

COVID-19 restrictions affected sales, created liquidity crunch: Lyka Labs

"There has been interruption in supply of raw material and packing material to the factory," it added.

June 05, 2020 / 11:46 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Pharmaceutical firm Lyka Labs on Friday said the coronavirus-induced lockdown had an adverse impact on sales, created liquidity crunch and the company's performance continues to be affected by COVID-19 restrictions.

In a regulatory filing disclosing the impact of COVID-19, Lyka Labs said although the government allowed pharma firms to operate during the lockdown, presence of workers at its Ankleshwar factory, in Gujarat, was very low, as a result production has been badly affected. The plant was running at 40 per cent of its capacity.

"There has been interruption in supply of raw material and packing material to the factory," it added.

Lyka Labs further said "parties who have placed orders with the company have deferred the execution of orders, as a result, sales has been affected and created liquidity crunch."

The company has to bear interest cost and fixed overheads by way of rent of the office premises and Research and development (R&D) center affecting liquidity position, it added.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

The administrative office and R&D center of the company at Mumbai are partially operating at present after closing down initially during the lockdown.

The performance of the company continues to be affected during lockdown, it added.

PTI
first published: Jun 5, 2020 11:42 am

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347