Ipca Laboratories Shares Jump to 52-Week High on US FDA's VAI Classification

23 Oct 2023 , 01:18 PM

In early trading on October 23, Ipca Laboratories’ shares jumped over 7% and to a 52-week high of Rs 1,003, after the US Food and Drug Administration’s Voluntary Action Indicated (VAI) classification for its Ratlam subsidiary surprised the markets in a good way. 

‘Facility considered to be in a minimally acceptable state of compliance with regards to current good manufacturing practice,’ according to the US Food and Drug Administration. Ipca’s Ratlam operation was inspected by the US drug administration from June 5–13.

The US FDA had already issued 11 observations against Ipca’s Ratlam manufacturing unit, raising expectations among analysts that the facility would be assigned an Official Action Indicated (OAI) status—the harshest classification.

The current round of inspections at several Ipca Labs production facilities is perceived as an attempt by the corporation to expand its US activities, particularly following its acquisition of Unichem Laboratories.

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