Ipca Labs hits a new 52-week low

IPCA Labs is the top loser on the BSE currently, hitting a new 52-week low at Rs.480.

The reason for this selling on the counter is the latest update from the company. It has informed that Global Fund of  Switzerland has informed the Company that in the light of the warning letter issued to Ipca by the United States Federal Drug Regulatory Authority (US FDA) on January 29, 2016, they have re-assessed the situation. Following this, it has decided to not allocate any volume of Artemisinin based Combination Therapy (ACTs) to the Company. Global Fund will only source ACTs from other pre-qualified suppliers that have no outstanding issues with the regulators.

Global Fund supports various disease eradication programs on a financial basis and this ACT drug was for the treatment of malaria.

The US FDA had found major discrepancies at its three plants – one in Silvassa and another two in Madhya Pradesh. The FDA inspectors observed systemic data manipulation and other current good manufacturing practices (CGMP) violations and deviations at all the three facilities.