Ipca Laboratories tanks 11% as Geneva-based fund not to source malaria drug
Shares of Ipca Laboratories ended at their lowest level in 36 months on news that Switzerland-based The Global Fund will not source malaria drug from the company.
By ET Bureau | Updated:
MUMBAI: Shares of Ipca Laboratories ended at their lowest level in 36 months on news that Switzerland-based The Global Fund will not source malaria drug from the company. The stock ended down 10% at Rs 502.30, after falling as much as 14% intraday.
The Global Fund, which financially supports various disease eradication programmes, will not source malaria drug as Ipca has received warning letter from US drug regulator for manufacturing lapses at three of its facilities.
“...this is a major negative after the US FDA adversities as this business was a high margin one and a major growth driver,“ said ICICIdirect. It has downgraded the stock to `hold' from `buy' and slashed target price by 30% to Rs 515.
Edelweiss Sec has also cut its target price by 21.4% to Rs 440.Ipca Laboratories ended at their lowest level in 36 months on news that Switzerland-based The Global Fund will not source malaria drug from the company. The stock ended down 10% at Rs 502.30, after falling as much as 14% intraday.
The Global Fund, which financially supports various disease eradication programmes, will not source malaria drug as Ipca has received warning letter from US drug regulator for manufacturing lapses at three of its facilities.
“...this is a major negative after the US FDA adversities as this business was a high margin one and a major growth driver,“ said ICICIdirect. It has downgraded the stock to `hold' from `buy' and slashed target price by 30% to Rs 515.
Edelweiss Sec has also cut its target price by 21.4% to Rs 440.a-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.
The Global Fund, which financially supports various disease eradication programmes, will not source malaria drug as Ipca has received warning letter from US drug regulator for manufacturing lapses at three of its facilities.
“...this is a major negative after the US FDA adversities as this business was a high margin one and a major growth driver,“ said ICICIdirect. It has downgraded the stock to `hold' from `buy' and slashed target price by 30% to Rs 515.
Edelweiss Sec has also cut its target price by 21.4% to Rs 440.Ipca Laboratories ended at their lowest level in 36 months on news that Switzerland-based The Global Fund will not source malaria drug from the company. The stock ended down 10% at Rs 502.30, after falling as much as 14% intraday.
The Global Fund, which financially supports various disease eradication programmes, will not source malaria drug as Ipca has received warning letter from US drug regulator for manufacturing lapses at three of its facilities.
“...this is a major negative after the US FDA adversities as this business was a high margin one and a major growth driver,“ said ICICIdirect. It has downgraded the stock to `hold' from `buy' and slashed target price by 30% to Rs 515.
ADVERTISEMENT
Edelweiss Sec has also cut its target price by 21.4% to Rs 440.a-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.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
Oxford University strikes new malaria vaccine pact with Serum Institute of IndiaADVERTISEMENT
