Indoco Remedies in good health

Indoco Remedies has shown a jaw-dropping over 42 times surge in volumes and the stock price surging 18% intra day to Rs.314. It remains firmly over Rs.300. Its 52-week high is at Rs.413 and low at Rs.244.

The company announced yesterday after market hours that it has received the Establishment Inspection Report (approval) from US Food and Drug Administration (USFDA) for its solid dosages manufacturing facility at Goa (Plant I).

What is this EIR? The US FDA has the authority to inspect any establishment in which food is manufactured, processed, packed, or held. In searching for contamination, the FDA typically uses organoleptic inspection methods - investigators trained to distinguish contamination and decomposition by sight and smell. Upon completion of such an inspection, the FDA will generate an "Establishment Inspection Report" detailing any problems found. Where problems are found, the FDA will instruct the owner of the inspected facility how to proceed in resolving those problems. But when an EIR is issued, it usually means closure of any issues with US FDA, things are good to go. Thus the receipt of this EIR is good news.

Recently two more companies had received an EIR – SeQuent Scientific for its Karnataka plant and Alkem Labs for its Mandva plant.