During the recent USFDA inspection at the IPCA Labs Active Pharmaceutical Ingredients(APls) manufacturing facility situated at Ratlam (Madhya Pradesh), the company has received certain inspection observations in Form 483 from the USFDA. Consequent to this, the company has voluntarily decided to temporarily suspend API shipments from this manufacturing facility for the US markets till this issue is addressed.

This voluntarily stoppage of API shipments from the Ratlam manufacturing facility will also have impact on the company's formulations export business to the US market since the company's formulations manufacturing units situated at Piparia (Silvassa) and SEZ, Indore (Pithampur) use the APls manufactured from the company's Ratlam manufacturing facility for manufacturing formulations for the US market. The Company has committed in resolving this issue at the earliest.

Commenting on the same, Sarabjit Kour Nangra, VP research, pharma, Angel Broking, said, ''We expect the FY2015 sales to be impacted, while FY2016 should remain impact, thus we maintain our FY2016 numbers. As of now we have reduced our sales and net profit by 4% for FY2015, while maintaining our FY2016 numbers. We maintain our buy on the stock with a price target of Rs 1,046.''

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