IPCA Lab Falls 8% on Suspension of US Shipments
Shares in IPCA Laboratories fell over 8 per cent to Rs 767.90 on Thursday after the drugmaker suspended Active Pharmaceutical Ingredients (API) shipments to the US following an inspection by the US Food and Drug Administrator (FDA).
"The company has received certain inspection observations in Form 483 from the US FDA," IPCA Lab said in a statement to the Bombay Stock Exchange.
Form 483, issued by the US FDA, notifies the company's management of objectionable conditions. Companies are encouraged to respond to the FDA Form 483 in writing with their corrective action plan and then implement that corrective action plan expeditiously.
The voluntarily stoppage of API shipments will impact IPCA Lab's formulations export business to the US market since its formulations units situated at Piparia (Silvassa) and SEZ, Indore (Pithampur) use APls from Ratlam for manufacturing formulations for the US market.
Analysts say this move will have a revenue impact of Rs 250-300 crore on IPCA Lab, which is 15 per cent of its overall revenue. This will also hurt its formulation sale as IPCA is backward intergated.
As of 9.50 a.m. shares in IPCA laboratories traded 8.12 per cent lower at Rs 769 compared to 0.15 per cent fall in Nifty.
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