Credit Suisse downgrades Ipca Labs, stock falls 15.7 per cent

IPCA Laboratories shares plunged 15.7 per cent on the Bombay Stock Exchange (BSE) to their lowest since September 2013 in morning trade on Wednesday after Credit Suisse downgraded the stocks to 'underperform' from 'neutral', citing negative US Food and Drug Administration (FDA) observations.

FDA observations are on the pharma firm's Indore facility, Credit Suisse said.

The financial services company further said two of these observations were critical, and could delay the recovery of US sales for IPCA.

Shares were trading at Rs 699.10 a piece, down 77.20 points (or 10.34%) at 12:44 pm on the BSE.

(Reuters)