IPCA Labs spurts after USFDA partially lifts import ban for Chloroquine supply

IPCA Laboratories informed that the USFDA had partially lifted an import alert on the company's two plants to ensure supply of Chloroquine tablets.

The scrip surged 7.81% to Rs 1478.95. It had traded in the range of Rs 1464.05 and Rs 1615.70 so far during the day.

In an exchange filing made on Saturday, the company informed that the United States Food and Drug Administration (USFDA) vide its e-mails dated 20 March 2020 has made exception to the import alert for the company's active pharmaceutical ingredients (APIs) and finished products (formulations).

The exception has been made for the Hydroxychloroquine Sulphate and Chloroquine Phosphate APIs produced at the company's APIs manufacturing unit situated at Ratlam (Madhya Pradesh) and hydroxychloroquine sulphate tablets produced at the company's formulations manufacturing units situated at SEZ Indore, Pithampur (Madhya Pradesh) and Piparia (Silvassa).

USFDA has also informed that their exception will be re-considered if the shortage implications change, the company said.

The drug maker added that several credible articles/reports/research papers claiming prophylactic as well as treatment potentials of Chloroquine Phosphate and Hydroxychloroquine Sulphate formulations in managing/treating Coronavirus disease (Covid-19), though these drugs are not approved for treatment by any regulatory authority.

Due to this, the company is noticing an increase in the emergency demand and enquiries for the Chloroquine Phosphate and Hydroxychloroquine Sulphate APls and its formulations from several countries world over.

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 cGMP, quality and regulatory requirements and thus help mankind in the best possible way in these testing times, the company concluded.

On a consolidated basis, IPCA Laboratories' net profit jumped 24.13% to Rs 197.61 crore in Q3 December 2019 as against 159.19 crore posted in Q3 December 2018. Revenue from operations rose 21% year-on-year (YoY) to Rs 1212.86 crore in Q3 December 2019.

IPCA Laboratories is a manufacturer and supplier of over 10 active pharmaceutical ingredients (APIs).

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