Ipca Falls 10% on Talk Global Fund may not Source Drug

The Economic Times - - Markets: Beating Volatility - Our Bu­reau

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 .₹ 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 .₹ 515.

Edel­weiss Sec has also cut its tar­get price by 21.4% to .₹ 440.

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