United States Food and Drug Administration (USFDA) informed Ipca Laboratories that its API Hydroxychloroquine Sulphate’s shortage implications have been changed and now, it has been removed from the list of drug products in shortage. In-line with this, USFDA is removing the exemption given to the company from the import alert for API and formulation of Hydroxychloroquine Sulphate.
In March 2020, along with Hydroxychloroquine Sulphate, Ipca’s Chloroquine Phosphate API faced shortage implication due to an urgent demand in several countries. Both these APIs were excluded from the import alert imposed by USFDA. However, in last week of June, Chloroquine Phosphate API came under USFDA's import alert.
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USFDA had already stated earlier that the company would be informed if the exception was reconsidered, taking into consideration, the change in shortage implications. Thus, currently, Ipca’s both the APIs i.e. Hydroxychloroquine Sulphate and Chloroquine Phosphate has come under USFDA’s import alert.
On the financial front, looking at the full-year numbers i.e. for FY20, Ipca’s revenue jumped by 23 per cent YoY to Rs 4,648.71 crore while, EBITDA grew by 31 per cent YoY to Rs 906.7 crore. Further, the company reported a net profit of Rs 603.56 crore, up by 36 per cent YoY. During FY20, its revenue from Indian formulations’ segment grew 16 per cent YoY while the exports grew 24 per cent YoY. Also, the domestic API segment delivered a growth of 24 per cent YoY and exports API increased by 35 per cent YoY.
On Thursday, the stock of Ipca Lab opened gap-up 2.6 per cent at Rs 1,683.95 from its previous close of Rs 1,641.60 on BSE.