Shares of Ipca Laboratories nose-dived around 15.35 per cent to an intraday low of Rs 436.10 on NSE in early trade today, after the company said the US Food and Drugs Administration (USFDA) has refused admission to all drugs made at two of its facilities and all except one drug from another facility of the company. The USFDA cited violations of current good manufacturing norms for taking the step against the company.
The ban on all drugs made at Pithampur (Madhya Pradesh) and Silvassa (Dadra and Nagar Haveli) will continue “until the company can demonstrate that the drugs manufactured from these manufacturing sites and intended for the US market are in compliance with the current good manufacturing practice regulation (CGMP),” IPCA Laboratories said in a statement.
All drugs except API Chloroquine Phosphate made at Ratlam (Madhya Pradesh) unit have also been denied entry in the US, it further said. However, it said the US health regulator will reconsider the exception for Chloroquine Phosphate made at the Ratlam facility if shortage and/or medical necessity implications change.
Last year, the USFDA had issued a warning letter to the company over violations of manufacturing norms at the three facilities.
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After opening at Rs 464 shares of the company made an intraday high and low of Rs 485 and Rs 436.10. Shares of the company had made a fresh 52-week high of Rs 656 on April 5, 2017, and 52-week low of Rs 435 on June 24, 2016.
At 11:27 a.m., the stock was trading 10.93 per cent down at Rs 458.30. Benchmark BSE Sensex was up 16.94 points, or 0.05 per cent, at 31,092.67 at around the same time, while NSE Nifty was up 8.65 points or 0.09 per cent at 9,586.70 points.
On the NSE, 48.39 lakh shares have been traded so far, while on the BSE, 5.70 lakh shares were traded against the average daily volumes of 5,072 shares in the past two weeks.