Ipca Lab slumps after import alert from USFDA

Ipca Laboratories fell 8.04% to Rs 643.10 at 12:32 IST on BSE after the firm said that the United States Food and Drug Administration has issued an import alert to the company's active pharmaceutical ingredients manufacturing facility at Ratlam, MP.

The announcement was made during market hours today, 23 January 2015.

Meanwhile, the S&P BSE Sensex was up 211.39 points or 0.73% at 29,217.41.

On BSE, so far 3.67 lakh shares were traded in the counter as against average daily volume of 46,973 shares in the past one quarter.

The stock hit a high of Rs 681.05 and a low of Rs 637.35 so far during the day. The stock had hit a record high of Rs 906.90 on 28 February 2014. The stock had hit a 52-week low of Rs 630 on 10 November 2014.

The stock had underperformed the market over the past one month till 22 January 2015, declining 1.67% compared with Sensex's 4.71% rise. The scrip had also underperformed the market in past one quarter, sliding 0.58% as against Sensex's 8.28% rise.

The mid-cap company has equity capital of Rs 25.24 crore. Face value per share is Rs 2.

Ipca Laboratories in a clarification with regard to news item titled "IPCA Labs gets USFDA import alert for Ratlam plant" said that US Food and Drug Administration (USFDA) issued an import alert to the company's active pharmaceutical ingredients (APIs) manufacturing facility at Ratlam, Madhya Pradesh yesterday, 22 January 2015.

However, four APIs manufactured at Ratlam facility viz. Hydroxychloroquine Sulfate, Propanolol Hydrochloride, Trimethoprim, and Ondansetron are excluded from the import alert, Ipca Lab said.

The company is fully commttted in resolving this issue at the earliest, Ipca said. The company is also committed to its philosophy of highest quality in manufacturing, operations, systems, integrity and cGMP culture, it added.

Ipca Laboratories' net profit fell 52.6% to Rs 61.30 crore on 7.6% decline in net sales to Rs 774.87 crore in Q2 September 2014 over Q2 September 2013. The company is set to announce its Q3 December 2014 earnings on 7 February 2015.

Ipca Laboratories is a fast growing company with a strong thrust on exports which now account for 57% of company's income. Ipca is vertically integrated and produces finished dosage forms and active pharmaceuticals ingredients.

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