Indoco Remedies gains over 5% on acquisition of unit at Baddi

The stock up 6% to Rs 349 after the company announced it has acquired the manufacturing facility of Micro Labs located at Baddi.

Indoco Remedies has gained over 6% to Rs 349 on the BSE after the pharmaceutical company announced it has acquired the manufacturing facility of Micro Labs located at Baddi.

Micro Labs, Baddi facility is spread over an area of 18000 square meters (sq.mt.), out of which 11,000 sq.mt.is the built-up area. It produces 4.3 billion tablets and 50 million capsules per annum.

The acquired manufacturing site is close to Indoco's existing manufacturing plant in Baddi, Himachal Pradesh. Baddi will thus be another manufacturing hub for Indoco's solid dosages business in the regulated markets, Indoco Remedies said in a statement.

With this acquisition, Indoco will now have 6 facilities for finished dosages and 3 for APIs. Out of these, 3 facilities for finished dosages, including sterile plant and 2 facilities for API manufacturing are USFDA approved.

The stock rallied 11% in past three trading sessions from Rs 315 on Friday. It fell 12.5% from its 52-week high of Rs 360 touched on September 7, after Indoco Remedies said that USFDA inspected the company's Goa plant II from August 31, 2016 to September 04, 2016. The injectable ANDA filings triggered this inspection.

The company said at the end of the inspection, six 483s were issued. All the observations (483s) are correctable and the Company expects to complete the corrective and preventive actions within a period of 30 days.

None of the 483s are related to Data Integrity issue, it added.

At 11:58 am, the stock was up 5.5% at Rs 348 on the BSE, as compared to 0.51% rise in the S&P BSE Sensex. A combined 113,299 shares changed hands on the counter on the BSE and NSE.