Mumbai: Shares of IPCA Laboratories slumped up to 13 percent Wednesday after import alerts were issued by the US FDA against two of its formulations manufacturing units.
Reacting to this, shares of the company opened on a weak note and then tanked as much as 12.46 percent to touch an intra-day low of Rs 665.25 on the BSE.
Similar trend was witnessed on National Stock Exchange, where the stock opened at Rs 694.10, then fell 13.55 percent to an early low of Rs 665.25.
The stock, however, recovered some ground and was quoted 12.23 percent down at Rs 667.05 on the BSE and 13.07 percent down at Rs 669 on the NSE.
In a regulatory filing, the company said the FDA has issued import alert on the company's formulations manufacturing units, situated at SEZ Indore (Pithampur) and Piparia (Silvassa).
"The company is fully committed in resolving this issue at the earliest," it added.
The company has voluntarily decided to suspend API shipments from Ratlam manufacturing unit for the US market till the FDA inspection observations issue is resolved.
The filing said since its units at Indore and Piparia use the APIs from the Ratlam manufacturing unit for formulations manufactured at these units for the US market, the voluntary stoppage of API shipments from the Rallam unit will also have impact on its formulations exports.
