Ipca Laboratories fell 1.73% to Rs 746 at 12:12 IST on BSE, after the company informed that The Global Fund, Geneva, Switzerland, will not source drugs from the company following a warning letter from the US regulator.
The announcement was made after market hours yesterday, 7 April 2016.Meanwhile, the S&P BSE Sensex was down 1.69 points or 0.01% at 24,683.73
On BSE, so far 3.36 lakh shares were traded in the counter as against average daily volume of 51,203 shares in the past one quarter. The stock hit a low of Rs 480 in intraday trade so far, which is 52-week low for the counter. The stock hit a high of Rs 534 so far during the day. The stock had hit a 52-week high of Rs 888 on 19 August 2015. The stock had underperformed the market over the past one month till 7 April 2016, sliding 3.04% compared with 0.16% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 19.27% as against Sensex's 0.67% fall.
The mid-cap company has equity capital of Rs 25.24 crore. Face value per share is Rs 2.
Ipca Laboratories said that The Global Fund, Geneva, Switzerland vide their letter dated 4 April 2016 (which was transmitted to the company vide their e-mail dated 6 April 2016), has informed the company that in the light of the warning letter issued to the company by the United States Federal Drug Regulatory Authority (US FDA) on 29 January 2016, they have re-assessed the situation and following a risk consideration exercise, will not allocate any volume of Artemisinin based Combination Therapy (ACTs) to the company and that will only source ACTs from other pre-qualified suppliers that have no outstanding issues with the regulators.
Ipca Laboratories' net profit fell 44.2% to Rs 23.18 crore on 8.2% decline in net sales to Rs 674.27 crore in Q3 December 2015 over Q3 December 2014.
Ipca Laboratories is vertically integrated and produces finished dosage forms and active pharmaceuticals ingredients.
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