Lupin surges 10% on good volumes after getting EIR from USFDA for Goa plant

Shares of Lupin surged 10 per cent to Rs 972.50 on the BSE in Tuesday’s intra-day trade, after the drug-maker announced that it has received the Establishment Inspection Report (EIR) from United States Food and Drug Administration (US FDA) for its Goa manufacturing facility. The US drug regulator had inspected the facility in September 2021.

Lupin said the US FDA has determined that the inspection classification of the facility is Voluntary Action Indicated (VAI).

“This is a significant milestone as we build back our reputation of being best-in-class in Quality and Compliance. We are committed to manufacture and supply products of the highest quality from all our manufacturing sites.” said Vinita Gupta, CEO, Lupin.

Commenting on the development, Nilesh Gupta, managing director, Lupin said: “This is a very positive development and we are delighted with the news of the change in classification of our Goa site. The Goa site has a very important place in the US market with the number of affordable, quality medicines we supply, and we now look forward to new products flowing out of the site again.”

Shares of Lupin had hit a 52-week low of Rs 854 on December 7, 2021. It touched a 52-week high of Rs 1,267.50 on June 2, 2021. Despite of today’s gain, the stock has underperformed the market by falling 18 per cent in past six months, as compared to 10.5 per cent rally in the S&P BSE Sensex. In the last one year, however, it has gained 3 per cent, against 26 per cent surged in the benchmark index.

"Lupin plans to strengthen the biosimilars portfolio across, especially in EU and the US apart from continued respiratory traction in the US. Its tie-ups with Eli Lilly, Boehringer for anti-diabetics and with MSD for pneumonia vaccines will help bolster domestic franchise and the progress on the margins front are key triggers for future price performance," ICICI Securities said in Q2FY22 result update.

At 10:20 am; the stock traded 7 per cent higher at Rs 944, as compared to 0.63 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over five-fold with a combined 4.96 million equity shares changed hands on the NSE and BSE.