IPCA Labs spooked by US FDA

IPCA Labs is currently the top loser on the BSE, down 9% at Rs.763.60, with an intra day low at Rs.752 and this was though the stock had opened at Rs.832.

The stock reacted sharply to the announcement made by the company in the early trading hours that it had voluntarily stopped shipments from the company’s Active Pharmaceutical Ingredients (APIs) manufacturing facility located at Ratlam in Madhya Pradesh, for the US markets. This is after the company received certain inspection observations in Form 483 from the US FDA.

This stoppage will also affect its formulations export business to the US as the formulations making units use the APIs from the Ratlam unit.