The United States Food and Drug Administration (USFDA) inspection of its Piparia (Silvassa) formulations manufacturing unit in August resulted in three observations, it added.
Analysts see 13.4% annual growth in domestic business over FY18-21
The stock was trading at 17 times its 2020 earnings estimates
The stock hit a 52-week high of Rs 671, up 5% on the BSE in otherwise weak market.
Ipca Pharmaceutical Inc is a wholly-owned subsidiary while Onyx Scientific Ltd, UK (Onyx) is a step down subsidiary of the company
Sorting out regulatory issues would lead to a re-rating
US FDA has not carried out any new inspection or re- inspection of the company's manufacturing units
The new action by the US regulator saw the stock lose a little more than 8%, to close at Rs 470.70
The stock tanked 15% to Rs 437 on BSE in intra-day trade on back of heavy volumes
Shares of Ipca Laboratories on Thursday rose 4.5 per cent, after the company reported over twofold jump in its standalone net profit at Rs 47.6 crore for the first quarter ended June, on account of robust sales.
At 12:34 pm, the stock was up 4% at Rs 524, after hitting low of Rs 494 on the BSE in intra-day trade.
India business continues to grow, but global trade holds the key
Move follows USFDA warning letter to three of Mumbai-based drug maker's plants; stock sheds 10%