AstraZeneca tanks almost 11% on termination notice for Meronem

AstraZeneca Pharma stock plunged almost 11 percent today as it will stop selling anti- bacterial drug Meronem in India following a global deal by its UK parent to sell its small molecule antibiotics business to Pfizer Inc.

The scrip tanked 7.93 percent to Rs 1,050 on BSE.

On NSE, it dipped 10.83 percent to Rs 1,015.

Meronem is anti-bacterial used for the treatment of serious infections in hospitalised patients.

The company has received a notice from AstraZeneca UK for termination of distribution arrangements for Meronem in India, AstraZeneca Pharma India said in a regulatory filing yesterday.

"The current distribution arrangement for Meronem in India will terminate in six months," it added.

This is a result of a global agreement by AstraZeneca PLC to sell the development and commercialisation rights to Pfizer Inc of its late stage small molecule antibiotics business, it said.