Moneycontrol Bureau
Investors offloaded a huge chunk of shares of Ipca Laboratories on Friday. The stock fell nearly 9 percent intraday. The pharmaceutical firm received import alert from US Food and Drug Administration for its Ratlam unit due to violations of standard production practices.
"The USFDA has issued an import alert to the active pharmaceutical ingredients (APls) manufacturing facility situated at Ratlam (Madhya Pradesh) on January 22, 2015," said the Indian generic maker in its filing to the exchange.
However, four API's (which are Hydroxychloroquine Sulfate, Propanolol Hydrochloride, Trimethoprim and Ondansetron) manufactured in this manufacturing facility are excluded from the import alert, it added.
In a clarification note to the exchanges, the company said in July 2014, it had received certain inspection observations for Ratlam facility in Form FDA 483 from the US FDA. "Consequent to which the company had voluntarily decided to temporarily suspend API shipments from this manufacturing facility for the US markets till this issue is addressed," it added. In July, the FDA outlined half a dozen violations including data integrity issues.
However, Sarabjit Kour Nangra of Angel Broking still recommends buying the stock with a target price of Rs 817. "We are not changing our estimates as we had already pruned the same when company got a 483’s," she says.
At 15:08 hours IST, the stock was quoting at Rs 639, down Rs 60.30, or 8.62 percent amid high volumes on the BSE.
Posted by Sunil Shankar Matkar
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