USFDA reports serious violations at IPCA's Ratlam facility
As of FY2014, the US market has contributed sales of Rs 420 crore (12% of total sales) for IPCA Labs
BS B2B Bureau B2B Connect | Mumbai
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In July, IPCA had stopped the supply of ingredients to the US market from its Madhya Pradesh plant after USFDA issued an import alert against it.
The observations are related to the company's laboratory practices and staff training, which may lead to more severe warnings or even an import ban if not addressed properly.
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As of FY2014, the US market has contributed sales of Rs 420 crore (12% of total sales) for IPCA Labs. Sales of the company are expected to be hit with a loss of Rs 150 crore in the next six months, according to company officials. The company expects to address the FDA concerns in about four to six months.
This voluntarily stoppage of API shipments from the Ratlam manufacturing facility will also have an impact on the company's formulations export business to the US market since IPCA Labs' formulations manufacturing units situated at Piparia (Silvassa) and SEZ, Indore (Pithampur) use the APls manufactured from the Ratlam facility for manufacturing formulations for the US market.
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First Published: Aug 12 2014 | 2:02 PM IST