Shares of Ipca Laboratories saw a significant surge, climbing over 7 percent and reaching a 52-week high of Rs 1,003 in early trade on October 23. The boost came after the US Food and Drug Administration’s (FDA) Voluntary Action Indicated (VAI) classification for its Ratlam unit was announced, surprising the market positively. According to the FDA, the facility was considered to be in a minimally acceptable state of compliance with regards to current good manufacturing practice, indicating a favorable outcome for the company.
This classification was particularly noteworthy as Ipca’s Ratlam unit had previously received 11 observations from the US FDA during their inspection from June 5-13. There were expectations among analysts of the unit receiving a more severe Official Action Indicated (OAI) status. The news of the VAI classification resulted in a substantial boost in the company’s stock price.
By 11:24 am, shares of Ipca Labs were trading 7.21 percent higher at ₹1,003.40 on the National Stock Exchange. This recent development is seen as a strategic move by the company to enhance its operations in the US, especially following its acquisition of Unichem Laboratories.
