Indoco Remedies touches 52-week low

The stock price of Indoco Remedies dropped 16.38 per cent in early trade, and is trading at Rs 218.2 on an intraday basis. The stock touched its 52-week low at Rs 209 on Monday.

The US Food and Drug Administration (US FDA) has issued a warning letter to Indoco Remedies’ manufacturing plant in Goa for violation of goods manufacturing practices.

The US drug regulator had inspected the plant between August 31 and September 4, 2016 and made six observations relating to deviation from norms. At the same time, the company has given responses for four queries, which have been accepted. It is preparing for giving reply to the remaining two observations, pertaining to one specific product.

USFDA has observed that Indoco Remedies has not investigated properly its failure of drugs batch. The company’s quality control lacked authority to reject or approve all drugs and did not fully follow procedures. It also observed that no procedures were established and followed to prevent microbial contamination.

As per Indoco Remedies management, it was fully committed in resolving the issue and will respond to the queries at the earliest. The company will continue to supply products from its facility to meet obligations to customers and the patients in the US.