Ipca Labs crashes 15% after Credit Suisse downgrades it

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26 Aug, 2025 12:21

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Shares of Ipca Labs crashed 15 percent intraday on Wednesday after Credit Suisse downgraded the stock to underperform from neutral. The brokerage has also cut its FY15/16 earnings per share (EPS) by 2/12 percent to factor in US sales recovery delay as it impacts the ability to revive sales by shifting active pharmaceutical ingredients (API) to third party. 

According to the Credit Suisse, Form 483 for the Indore SEZ suggests Food and Drug Administration (FDA) observations are critical and could delay recovery of US sales.

“FDA has pointed six observations in Form 483. We consider two of these critical, pertaining to the practice of conducting trial/unofficial samples and overwriting/deleting raw data files. We consider these critical as similar observations resulted in adverse FDA action at Sun's Karkhadi unit and Wockhardt's Waluj unit,” it said in a report.

The brokerage firm further warns that FDA inspection at the Silvassa facility is due for Ipca  as it was last inspected in July 2012.

At 10:50 hrs Ipca Laboratories was quoting at Rs 665.65, down Rs 80.65, or 10.81 percent.

Posted by Nasrin Sultana