Indoco Remedies drops as Goa plant gets USFDA observations

Indoco Remedies fell 2.66% to Rs 269 at 09:44 IST on BSE after the company said that its Goa plant has received 8 observations from the US Food and Drug Administration.

The announcement was made after market hours on Monday, 12 February 2018. Stock market had remained closed yesterday, 13 February 2018, on account of Mahashivratri.

Meanwhile, the S&P BSE Sensex was up 5.84 points or 0.02% at 34,306.31. The S&P BSE Small-Cap index was up 138.10 points or 0.75% at 18,601.48.

On the BSE, 7,088 shares were traded on the counter so far as against average daily volumes of 1.08 lakh shares in the past one quarter. The stock had hit a high of Rs 271.40 and a low of Rs 265.05 so far during the day. The stock had hit a 52-week high of Rs 317 on 24 January 2018 and a 52-week low of Rs 179 on 31 May 2017.

The stock had underperformed the market over the past 30 days till 12 February 2018, falling 3.26% compared with 0.84% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 1.06% as against Sensex's 4.12% rise. The scrip had also underperformed the market in past one year, rising 2.39% as against Sensex's 20.98% rise.

The small-cap company has equity capital of Rs 18.43 crore. Face value per share is Rs 2.

Indoco Remedies said that the US Food and Drug Administration (USFDA) had inspected the company's solid dosage plant in Goa (plant I). The company has received 8 observations (483s). All the observations are correctable and the company is in the process of preparing its response for the same. Exports from the solid dosage plant constitute less than 10% of the company's total export sales.

Indoco Remedies' net profit rose 28.82% to Rs 22.66 crore on 0.1% fall in total income to Rs 278.67 crore in Q3 December 2017 over Q3 December 2016.

Indoco Remedies is a fully integrated, research-oriented pharma company engaged in the manufacturing and marketing of formulations (finished dosage forms) and active pharmaceutical ingredients (APIs).

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