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Ipca Labs nears 52-week low on USFDA bans import of drugs from three plants

The stock tanked 15% to Rs 437 on BSE in intra-day trade on back of heavy volumes

SI Reporter  |  Mumbai 

Ipca: Investors should await clarity on FDA issues

tanked 15% to Rs 437 on BSE in intra-day trade after the company said the US Food and Drugs Administration (USFDA) has refused admission to all drugs made at the company's and facility. The stock is currently trading near to its 52-week low of Rs 435 touched on June 24, 2016.

“The ban on all drugs made at (Madhya Pradesh) and (Dadra and Nagar Haveli) will continue "until the company can demonstrate that the drugs manufactured from these manufacturing sites and intended for the US market are in compliance with the current good manufacturing practice regulation (CGMP) ," said in a statement.

The cited violation of current good manufacturing norms for taking the step against the company.

All drugs except API Chloroquine Phosphate made at Ratlam (Madhya Pradesh) unit have also been denied entry in the US, it further said.

However, it said the US health regulator will reconsider the exception for Chloroquine Phosphate made at the Ratlam facility, if shortage and/or medical necessity implications change.

At 9:53 am; the stock was trading 7% lower at Rs 479 on BSE as compared to 0.09% rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with a combined 3.83 million shares changed hands on the BSE and NSE so far.