IPCA Laboratories, on April 27 informed the exchanges that the US Food and Drug Administration (USFDA) issued three observations under Form 483 for the company’s formulations manufacturing unit situated at Piparia, Silvassa. The observations were followed by the USFDA inspection at the site from April 18 to April 26, 2023. The company said that it will work closely with the drug administrator to resolve these issues at the earliest.
On April 24, IPCA Labs had announced
acquisition of 33.38 percent stake in Unichem Laboratories with a total investment of Rs 1,034 crores at Rs 440 per share. The board approved open offer of up to 26 percent in Unichem Labs at Rs 440 per share aggregating to Rs 805 crores. Following the announcement, the company stated that it was seeing a status quo from the USFDA on its plants, with no developments. The company raising concerns on the same, said that both Unichem and IPCA have their own respective products and the deal was better than most of the deals in the last five years. "Looking for good compliance track record and spare capacity, will have to focus on margin improvement. We are also looking at EBITDA of Rs 300 crores in the next 2 years and can go to Rs 1,700-1,800 crores of turnover".
The company, on March 31 also approved the appointment of Premchand Godha as Whole-time Director. Ajit Kumar Jain was re-designated as Managing Director and Pranay Godha was given the charge of MD and CEO of the company for 5 years.
IPCA Labs stock on Wednesday was trading at lowest levels since three years and was down 20 percent in two days. On Thursday, the stock is trading on a flatline. In the last one year, the stock has fallen 30 percent and is down nearly 16 percent since the start of calendar year 2023.
(Edited by : Vahishta Unwalla)
