Ipca Laboratories shares plunge on voluntary suspension of US sales from Ratlam unit

Written by fe Bureau | Mumbai | Updated: Jul 24 2014, 19:26pm hrs
Ipca LaboratoriesIpca Laboratories said that it has voluntarily stopped shipments from its Ratlam manufacturing plant. Reuters
Ipca Laboratories said on Thursday that it has voluntarily stopped shipments from its Ratlam manufacturing plant in Madhya Pradesh to United States after the U.S. Food and Drug Administration identified certain issues in the facility.

Shares of the company fell as much as 11% to Rs 745.75 in intra-day trade till 1:30 pm.

The Mumbai-based company said the Ratlam unit, which is operational since 1985, is an active pharmaceutical ingredient (API) manufacturing facility. The issued were identified in a Form 483 issued by the U.S. Health regulator.

The unit also supplies APIs to the company's formulation manufacturing plants for captive consumption.

This voluntarily stoppage of API shipments from the Ratlam manufacturing facility will also have impact on the Company's formulations export business to the US market since the Company's formulations manufacturing units situated at Piparia (Silvassa) and SEZ, Indore (Pithampur) use the APls manufactured from the Company's Ratlam manufacturing facility for manufacturing formulations for the US market, Ipca said in a statement issued on the Bombay Stock Exchange.

Ipca said that it is fully committed in resolving this issue at the earliest.

The company is also committed to its philosophy of highest quality in manufacturing, operations, systems, integrity and cGMP culture, Ipca added.