Indoco Remedies Share Price Plummets As Goa Facility Receives USFDA Warning

Shares of Indoco Remedies Ltd. fell steeply over 8% in midday trade after the company reported a warning letter received from the US Food and Drug Administration on Tuesday, for two plants located in their Goa facility.

This development occurred after the company had an FDA inspection from Jul. 16 to Jul. 24, and subsequently received 'Official Action Indicated' status from the federal agency.

The pharmaceutical company emphasised its commitment to work closely with the USFDA through a statement disclosed to the national exchanges, and stated that the issues will be resolved at the earliest.

They further added that products continue to be supplied from the above-mentioned facility to customers and patients in the United States of America.

In other news, Indoco Remedies recently announced a collaboration with a UK–based pharmaceutical distributor. Indoco Remedies entered into a strategic distribution with Clarity Pharma UK, it said in an exchange filing on Monday.

The partnership with Clarity Pharma is significant for Indoco Remedies as it will launch 20 products over the next 18 months through the British pharmaceutical company in the UK market, the filing said.

Indoco Remedies will continue supplying all products under existing business–to–business partnership to its client, it said.

Indoco Remedies share price fell as much as 8.38% to Rs 312 apiece, the lowest level since Nov. 28, 2024. It pared losses to trade 3.92% lower at Rs 327.20 apiece, as of 11:53 a.m. This compares to a 1.01% decline in the NSE Nifty 50 Index.

It has fallen 15.15% on a year-to-date basis. Total traded volume so far in the day stood at 4.9 times its 30-day average. The relative strength index was at 54.14.

Out of seven analysts tracking the company, two maintain a 'buy' rating, two recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target remains flat.