Ipca Laboratories, a Rs.3,200 crore pharma major from Mumbai, has stopped shipment of APIs from its Ratlam facility to US after receiving certain inspection observations in Form 483 from the US Food and Drug Administration (FDA). This will have impact on the company's formulations export business to the US market as the company use the APIs manufactured from Ratlam facility. Ipca scrip declined sharply on BSE by over 12 per cent or Rs.102 to Rs.735 in the afternoon session today.

The company's consolidated net sales for the year ended March 2014 increased by 16.7 per cent to Rs.3,282 crore from Rs.2,813 crore in the previous year. Its international sales improved to Rs.2,095 crore from Rs.1,751 crore and domestic sales went up to Rs.1,186 crore from Rs.1,062 crore. The company exports of APIs to Americas improved 20.4 per cent to Rs.165 crore from Rs.137 crore and its formulations sales to Americas increased by 18.1 per cent to Rs.254 crore from Rs.215 crore.

The company has stepped-up investments in R&D to keep pace with the changing domestic and global scenario. The company has R&D centers at Mumbai, Ratlam, Athal and Indore, duly recognized by the Government of India, Ministry of Science and Technology, Department of Scientific & Industrial Research (DSIR).

Ipca is setting up a new research centre at Kandivli, Mumbai for biotech research & development activities The company is also in the process of setting-up a new R&D Centre at Village Ranu, Tehsil Padra, District-Vadodara, Gujarat. Both these R&D centres shall commence their operations in the current financial year. It has stepped up its R&D expenditure from Rs.100.74 crore (3.68 per cent of the turnover) in the previous year to Rs.123.24 crore (3.87 per cent of the turnover) in the year ended March 2014.

It has filed 40 ANDAs in respect of generic formulations with US FDA and received approval for 18 ANDAs so far. The company also filed 52 DMFs in US.