Lupin extends fall after Aurobindo gets USFDA nod for Generic Suprax

The stock dipped 5% to Rs 1,810, extending its previous day's nearly 3% fall on the National Stock Exchange.

Shares of drug maker Lupin have dipped 5% to Rs 1,810, extending its previous day’s nearly 3% fall on the National Stock Exchange (NSE), after Aurobindo Pharma got final approval from the US Food and Drug Administration (USFDA) to make and sell its generic version of oral suspension of antibiotic Cefixime.

“The approved ANDAs are bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Suprax® Oral Suspension USP 100mg/5mL and 200mg/5mL respectively of Lupin Pharmaceuticals Inc,” Aurobindo Pharma said in a statement.

Meanwhile, Barclays has maintained an ‘overweight’ rating on the stock with 12-month price target of Rs 2,266 as they believe the recent share price decline offers an even more attractive opportunity for invetsors.

“Lupin’s largest brand, Suprax is likely to face generic competition from Aurobindo Pharma. While the financial impact is relatively limited to 2-3% of EPS, per our estimates, we believe generic competition in two key brands is likely to further compel Lupin’s search for brand buys in the US to maintain management’s stated aim of obtaining 30% of the company’s US sales from brands,” Barclays said in a report dated April 16, 2015.

The stock opened at Rs 1,898 and touched a low of Rs 1,808 on the NSE so far. A combined 2.46 million shares changed hands on the counter till 1130 hours on the NSE and BSE. It has lost 14% from its record high of Rs 2,115 touched on April 8, 2015 in intra-day trade.