Don’t miss the latest developments in business and finance.

IPCA Lab slumps after USFDA bans drugs from three plants

Image
Capital Market
Last Updated : Jun 16 2017 | 9:47 AM IST

IPCA Laboratories fell 11.87% to Rs 452.25 at 9:28 IST on BSE after the company said its facilities at Indore, Silvassa and Madhya Pradesh have been banned from the US market.

The announcement was made after market hours yesterday, 15 June 2017.

Meanwhile, the S&P BSE Sensex was up 62.99 points, or 0.20% to 31,138.72.

On the BSE, 2.03 lakh shares were traded in the counter so far, compared with average daily volumes of 17,332 shares in the past one quarter. The stock had hit a high of Rs 468 and a low of Rs 437 so far during the day. The stock hit a 52-week high of Rs 656 on 5 April 2017. The stock hit a 52-week low of Rs 435 on 24 June 2016.

The stock had underperformed the market over the past one month till 15 June 2017, falling 5.75% compared with 1.36% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 6.55% as against Sensex's 4.81% rise. The scrip had also underperformed the market in past one year, rising 6.95% as against Sensex's 17.15% rise.

The mid-cap company has equity capital of Rs 25.24 crore. Face value per share is Rs 2.

IPCA Laboratories said that drugs manufactured at its facilities at SEZ Indore (Pithampur), Piparia (Silvassa) and Ratlam (Madhya Pradesh) have been banned from the US market by the US Food and Drug Administration (USFDA). The drug regulator cited violation of current good manufacturing norms for taking the step against the company. The USFDA has refused admission to all drugs made at the company's Pithampur and Silvassa facility. All drugs, except API Chloroquine Phosphate, made at Ratlam (Madhya Pradesh) unit have also been denied entry in the US, it further said. The ban will continue until the company can demonstrate that the drugs manufactured from these manufacturing sites and intended for the US market are in compliance with the current good manufacturing practice regulation (cGMP).

Net profit of IPCA Laboratories rose 34.8% to Rs 44.39 on 6% rise in net sales to Rs 665.80 crore in Q4 March 2017 over Q4 March 2016.

More From This Section

IPCA Laboratories is a fully-integrated Indian pharmaceutical company manufacturing over 350 formulations and 80 Active Pharmaceutical Ingredients (APIs) for various therapeutic segments.

Powered by Capital Market - Live News

Also Read

First Published: Jun 16 2017 | 9:30 AM IST

Next Story