Ipca hits 52-week low as Geneva-based fund not to source malaria drug

Shares of Ipca Laboratories slumped over 14 per cent on Friday as Switzerland-based Global Fund, which financially supports various disease eradication programmes, will not source malaria drug from the company.

The stock plunged 14 per cent to Rs 480 - its 52-week low - on BSE. The scrip settled the day 10.6 per cent lower.

On NSE, it tanked 14.29 per cent to hit its one-year low of Rs 478.60.

Switzerland-based Global Fund will not source malaria drug from Ipca Laboratories as the company has received a warning letter from the US health regulator for lapses in manufacturing norms at three of its facilities.

In a regulatory filing, Ipca Laboratories on Thursday said the Geneva-based organisation that provides financial aid against AIDS, tuberculosis and malaria, has informed the company about its decision on Wednesday via a letter.

"In the light of the warning letter issued to the company by the USFDA on January 29, 2016, they (The Global Fund) have re-assessed the situation and following a risk consideration exercise, will not allocate any volume of Artemisinin based Combination Therapy (ACTs) to the company," Ipca Laboratories said.