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