Ipca Labs shares hit fresh 52-week low in today’s trade; here is why

By: |
New Delhi | Updated: April 8, 2016 4:42:58 PM

In the past one year, the share price of Ipca Labs plunged 12.74 per cent to Rs 558.55 on Arpil 7, whereas the BSE Sensex slid 13.43 per cent during the same period.

ipca labs, bse sensex, global fund switzerland, shares fallIpca Laboratories shares slipped as much as 14 per cent in the early trade and hit their fresh 52-week low of Rs 480 on Friday (Reuters)

Ipca Laboratories shares slipped as much as 14 per cent in the early trade and hit their fresh 52-week low of Rs 480 on Friday after the pharma company informed bourses that a Switzerland-based Global Fund, which financially supports various disease eradication programmes, 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.

At 9.41 am, shares of Ipca Laboratories were trading 10.66 per cent down at Rs 499. The scrip opened at Rs 525 and has touched a high and low of Rs 534 and Rs 480, respectively, in trade so far. Later, the share price ended 10.61 per cent at Rs 499.30. CLICK HERE FOR LIVE STOCK MARKET UPDATES.

In a regulatory filing, Ipca Laboratories 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.

For the quarter ended December 2015, the company reported net profit of Rs 23.18 crore, down 44.18 per cent, against Rs 41.53 crore in the same quarter last year.

In the past one year, the share price of Ipca Labs plunged 12.74 per cent to Rs 558.55 on April 7, whereas the BSE Sensex slid 13.43 per cent during the same period.

(With agency inputs)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition