New Delhi: Shares of Ipca Laboratories slumped over 8 percent on Friday after almost all drugs manufactured at its facilities at Pithampur, Silvassa and Ratlam were banned by the USFDA.
The stock tanked 8.08 percent to settle at Rs 471.70 on BSE. During the day, it tumbled 14.83 percent to Rs 437. At NSE, shares of the company dived 8.12 percent to close at Rs 473.30.
The company's market valuation fell by Rs 523.51 crore to Rs 5,951.49 crore.
In terms of volume, 8.61 lakh shares of the company were traded on BSE and over 75 lakh shares changed hands at NSE during the day.
The US Food and Drug Administration (USFDA) cited violation of current good manufacturing norms for its action. The USFDA has refused admission to all drugs made at the company's Pithampur and Silvassa facility, Ipca Laboratories said in a BSE filing on Thursday.
All drugs except API Chloroquine Phosphate made at Ratlam (Madhya Pradesh) unit have also been denied entry in the US, it further said.
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 CGMP," Ipca Laboratories added.
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.
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