Ipca Labs surges as USFDA partially lifts import ban for chloroquine supply

Shares of Ipca Laboratories soared 18 per cent to hit a new high of Rs 1,616 in an otherwise weak market on the BSE on Monday after the US health regulator partially lifted an import alert on the company’s two plants to ensure the supply of chloroquine tablets.

The medicine is considered one of the possible treatments for the Covid-19, by the US Centre for Disease Control (CDC).

“Due to the shortage implications and/or medical necessity of certain drugs and finished products, the United States Food and Drug Administration (FDA) has made exception to the import alert for the company's active pharmaceutical ingredients (APls) of hydroxychloroquine sulphate and chloroquine phosphate produced at the company's APl manufacturing unit situated at Ratlam in Madhya Pradesh,” Ipca Laboratories said in an exchange filing. READ THE FILING HERE

The regulator has also allowed import of hydroxychloroquine sulphate tablets produced at the formulations manufacturing units at Indore special economic zone and Pithampur in Madhya Pradesh, and Silvassa, it said.

The company further said that the US FDA has also informed that their exception will be re-considered if the shortage implications change.

Forseeing this increased demand, Ipca being amongst largest manufacturer, vertically integrated with capacities and capabilities for manufacturing of these APls and its formulations, is gearing to manufacture and supply these products meeting the stringent Current Good Manufacturing Practice (cGMP), quality and regulatory requirements and thus help mankind in the best possible way in these testing times, the company said.

At 09:57 am, the stock was trading 8 per cent higher at Rs 1,479 on the BSE. In comparison, the S&P BSE Sensex was locked in lower circuit of 10 per cent at 26,924 points. A combined 357,877 shares have changed hands on the counter on the BSE and NSE.