Indoco Remedies tanks 10%

The problems at Indoco Remedies Goa plant got a bit more compounded. Yesterday, United Kingdom’s  Medicines and Healthcare Products Regulatory Agency (UK-MHRA) inspected its drug manufacturing facility at Verna, Goa from 14th March 2018 to 16th March 2018.

Goa Plant I manufactures Solid Dosages, Liquid Orals and External Preparations.

Subsequent to the inspection, the UK-MHRA issued observations, which include 3 critical and 4 major.

Last month, the same plant got 3 observations from the US FDA and the company in the process of taking corrective actions. Exports from this plant constitutes less than 10% of the total exports.

On the other hand, a day after the FDA observations, its another plant at Goa (Plant III) got European GMP certification from Regulatory Authority of Hungary. The EU GMP certification will enable Indoco to continue to export medicinal products to all European countries.

The stock price has tanked today; it was down 10% at Rs.218.55 with volumes more than doubling up. Its 52-week low is at Rs.179 and high at Rs.317.