IPCA Laboratories fell 7.53% to Rs 774 at 9:46 IST on BSE after the company announced voluntary stoppage of shipments to the US market from the active pharmaceutical ingredients manufacturing facility at Madhya Pradesh.
The company made the announcement during trading hours today, 24 July 2014.
Meanwhile, the BSE Sensex was down 27.60 points, or 0.11%, to 26,119.73.
On BSE, so far 52,000 shares were traded in the counter, compared with an average volume of 16,660 shares in the past one quarter.
The stock hit a high of Rs 836.05 and a low of Rs 767.90 so far during the day. The stock hit a 52-week high of Rs 906.90 on 28 February 2014. The stock hit a 52-week low of Rs 609 on 22 August 2013.
The stock had underperformed the market over the past one month till 23 July 2014, rising 0.31% compared with 4.46% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 2.34% as against Sensex's 14.30% rise.
The large-cap company has an equity capital of Rs 25.24 crore. Face value per share is Rs 2.
During the recent US Food and Drug Administration (USFDA) inspection at the company's active pharmaceutical ingredients (APls) manufacturing facility situated at Ratlam in Madhya Pradesh, IPCA Laboratories received certain inspection observations in Form 483 from the USFDA.
Consequent to this, the company has voluntarily decided to temporarily suspend API shipments from this manufacturing facility for the US markets till this issue is addressed.
This voluntarily stoppage of API shipments from the Ratlam manufacturing facility will also have impact on the company's formulations export business to the US market since the company's formulations manufacturing units situated at Piparia (Silvassa) and SEZ, Indore (Pithampur) use the APIs manufactured from the company's Ratlam manufacturing facility for manufacturing formulations for the US market, the company said in a statement.
The company said it is fully committed 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.
Net profit of IPCA Laboratories rose 81.67% to Rs 137.03 crore on 12.32% rise in net sales to Rs 739.81 crore in Q4 March 2014 over Q4 March 2013.
IPCA Laboratories is a fully-integrated Indian pharmaceutical company manufacturing over 350 formulations and 80 APIs for various therapeutic segments.
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