Shares of IPCA Laboratories Ltd surged up to 7.8% to a 52-week high on Monday after the active pharmaceutical ingredients (API) manufacturer’s Madhya Pradesh manufacturing plant received an inspection report from the US Food and Drug Administration (USFDA). 

At the time of the market’s closing, IPCA Lab shares settled 6.10% higher from the last closing price on the National Stock Exchange (NSE) at Rs 993. The scrip jumped to a fresh 52-week high of Rs 1,009 during the intraday trade. 

In an exchange filing dated October 21, the pharmaceutical company said that it received an Establishment Inspection Report classifying the manufacturing facility as “Voluntary Action Indicated (VAI) classification from the USFDA for its manufacturing facility in Sejavata, Ratlam, Madhya Pradesh.

The USFDA conducted an inspection at the company’s APIs manufacturing facility from June 5, 2023, to June 13, 2023. The USFDA issued a Form 483 with eleven observations at the end of the inspection.

It added that according to the report, the facility is considered to be in a minimally acceptable state of compliance with regard to current good manufacturing practice (CGMP). 

The company stated that it will work closely with the FDA to find an early solution to these problems and thoroughly respond to these observations within the allotted period.