World's biggest maker of anti-malarial drugs struggling to combat market pressure

Shares of IPCA Laboratories., the world's biggest maker of anti-malarial drugs, fell to 1-month low as the company reported a sharp fall in quarterly profit on the back of an import alert by the US FDA and a slip in institutional orders.

IPCA, which got hit by import alerts on 3 of its plants, said its first quarter profit plunged 86 percent to 18.9 crore rupees from 136.7 crore rupees in the year ago quarter. Sales for April-to-June fell 19 percent to 758 crore rupees from 936 crore rupees in the year ago period. IPCA faced a forex loss of 11.3 crore rupees in the first quarter compared with a forex gain of 2.3 crore rupees in the year ago quarter. It also faced lower institutional orders for anti-malarial drugs.

As a consequence, IPCA fell 3.4 percent, or 23 rupees, to 667 rupees, its lowest level since June 22nd, on the National Stock Exchange, where 3.43 lakh shares changed hands by 1.30 pm compared with a 5-day average of 1.27 lakh shares.

The market capitalisation of IPCA has fallen 4 percent in one year to 8,740 crore rupees as the company grappled with falling sales and an intrusive check by the US FDA.

(Image credits: Indiatimes)