IPCA Labs stock slumps 9% on FDA import alert for Ratlam plant

Shares of IPCA Labs came under selling pressure in a strong market, plunging 9 per cent today, after the US FDA issued an import alert for its Ratlam, Madhya Pradesh plant.
Following this, shares of IPCA Labs slumped 8.85 per cent to Rs 637.35 at the BSE.
On the NSE, it fell sharply by 9 per cent to Rs 636.
"We refer to our letter dated July 24, 2014 informing about the outcome of US FDA inspection at the company's active pharmaceutical ingredients (APls) facility at Ratlam, Madhya Pradesh, during which the company received certain inspection observations in form FDA 483 from the US FDA, consequent to which the company voluntarily decided to temporarily suspend API shipments from this facility for the US markets till this issue is addressed," the company said in a BSE filing.

"We now wish to inform you that US FDA has issued an import alert to the said manufacturing facility on January 22, 2015," it added.
However, four API's manufactured at the said manufacturing facility are excluded from the import alert -- hydroxychloroquine sulfate, propanolol hydrochloride, trimethoprim, ondansetron.
The company is fully committted in resolving this issue at the earliest. The company is also committed to its philosophy of highest quality in manufacturing, operations, systems, integrity and cGMP culture, it said.
In the broader market, the BSE benchmark Sensex was trading 222.13 points higher at 29,222.82 at 1145 hrs.