Shares of Ipca Laboratories slumped over 14 per cent today as Switzerland-based Global Fund, which financially supports various disease eradication programmes, will not source malaria drug from the company.
The stock plunged 14 per cent to Rs 480 - its 52-week low -- on BSE.
On NSE, it tanked 14.29 per cent to hit its one-year low of Rs 478.60.
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Switzerland-based Global Fund will not source malaria drug from Ipca Laboratories as the company has received a warning letter from the US health regulator for lapses in manufacturing norms at three of its facilities.
In a regulatory filing, Ipca Laboratories yesterday said the Geneva-based organisation that provides financial aid against AIDS, tuberculosis and malaria, has informed the company about its decision on Wednesday via a letter.
"In the light of the warning letter issued to the company by the USFDA on January 29, 2016, they (The Global Fund) have re-assessed the situation and following a risk consideration exercise, will not allocate any volume of Artemisinin based Combination Therapy (ACTs) to the company," Ipca Laboratories said.
