IPCA Labs says USFDA removes partial lifting of import alert on Ratlam facility

The drug maker on Wednesday said that the US drug regulator has removed the partial lifting of import alert on its active pharmaceuticals ingredients (APIs) manufacturing facility in Madhya Pradesh.

In March 2020, US Food and Drug Administration (USFDA) exempted import alert on APIs chloroquine phosphate and hydroxycholoroquine sulfate manufactured in IPCA Laboratories' APIs manufacturing facility situated at Ratlam, Madhya Pradesh.

USFDA on 23 June 2020 informed the company that shortage implications for chloroquine phosphate API has changed and chioroquine phosphate drug product is no longer in shortage and therefore, no shipment of API chloroquine phosphate will be excluded from the import alert. USFDA also informed that due to potential shortage implications and/or medical necessity, exception to the import alert has been made for API hydroxychioroquine sulfate.

USFDA further said that this exception will be re-considered if the shortage implications change. The disclosure was made during market hours today, 24 June 2020.

Shares of IPCA Laboratories fell 1.37% to Rs 1,648.95 on BSE. The scrip hovered in the range of Rs 1,623.85 to Rs 1,673.50 so far.

On the technical front, the stock's RSI (relative strength index) stood at 58.358. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 50-day moving average (DMA) placed at 1,572.12 and its 200-day moving average (DMA) placed at 1,258.52.

IPCA Laboratories' consolidated net profit fell 13.5% to Rs 83.05 crore on 22.1% rise in net sales to Rs 1,073.76 crore in Q4 March 2020 over Q4 March 2019.

IPCA Laboratories is a vertically integrated pharmaceutical company. It produces finished dosage forms and active pharmaceutical ingredients.

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