The company made this announcement during trading hours today, 2 January 2012.

Meanwhile, the BSE Sensex was provisionally up 65.71 points, or 0.43% to 15,520.63.

On BSE, 11.07 lakh shares were traded in the counter as against average daily volume of 4.58 lakh shares in the past one quarter.

The stock hit a high of Rs 136.55 and a low of Rs 124.30 so far during the day. The stock had hit a 52-week low of Rs 112.25 on 19 December 2011. The stock had hit a 52-week high of Rs 324.65 on 4 April 2011.

The stock underperformed the market over the past one month till 30 December 2011, falling 16.96% compared with the Sensex's 4.15% fall. The scrip had also underperformed the market in past one quarter, declining 19.89% as against 6.07% decline in the Sensex.

The small-cap pharmaceutical company has an equity capital of Rs 70.44 crore. Face value per share is Rs 10.

Orchid Chemicals & Pharmaceuticals said that the phosphodiesterase 4 inhibitor (PDE4) molecule OCID 2987 is positioned for the treatment of inflammatory disorders including chronic obstructive pulmonary disease (COPD). The Phase I study of the molecule was conducted to evaluate the safety, tolerability, pharmacokinetic and pharmacodynamic effects of OCID 2987 at escalating single or repeated doses on healthy male volunteers. OCID 2987 was well tolerated up to the highest doses administered in both single and repeat dose studies and did not demonstrate a potential for nausea/emesis, a common unacceptable side-effect with most PDE4 inhibitors. There were no serious adverse events or any cardiac safety concerns reported in the study, Orchid said in a statement.

Orichid's drug discovery efforts are conducted through its wholly owned subsidiary, Orchid Research Laboratories.

Commenting on the development, Mr K Raghavendra Rao, CMD, Orchid Chemicals & Pharmaceuticals said, "We are extremely pleased with the results of the Phase I study of OCID 2987 and are committed to moving the molecule further in clinical development for the treatment of COPD and other inflammatory diseases. Given the positive results achieved in the earlier animal trials and now the Phase I trial, we are confident of successfully completing the further trials as we move forward".

On a consolidated basis, Orchid Chemicals & Pharmaceuticals' net profit rose 19.6% to Rs 20.73 crore on 17.8% growth in net sales to Rs 458.75 crore in Q2 September 2011 over Q2 September 2010.

Orchid Chemicals & Pharmaceuticals is a leading pharmaceutical company headquartered in Chennai. The company is involved in the development, manufacture and marketing of diverse bulk activities, formulations and nutraceuticals.