Lupin drops after USFDA action

Lupin lost 4.16% to Rs 752.65 at 11:55 IST on BSE after the USFDA classified the inspection of its Somerset facility as Official Action Indicated.

The announcement was made on Saturday, 16 March 2019.

Meanwhile, the S&P BSE Sensex was down 18.62 points, or 0.05% to 38,005.70

On the BSE, 2.16 lakh shares were traded in the counter so far compared with average daily volumes of 1.14 lakh shares in the past two weeks. The stock had hit a high of Rs 763.90 and a low of Rs 741.35 so far during the day.

Lupin said that the company's subsidiary Novel Laboratories Inc. has received a letter from the USFDA classifying the inspection conducted at its Somerset (New Jersey) facility in December 2018 as Official Action Indicated (OAI). The USFDA has stated that this facility may be subject to regulatory or administrative action and that it may withhold approval of any pending applications or supplements in which this facility is listed.

The company does not believe that this classification will have an impact on disruption of supplies or the existing revenues from operations of this facility, Lupin said. The company is in the process of sending further updates of its corrective actions to the USFDA and is hopeful of a positive outcome, it added.

On a consolidated basis, Lupin reported net loss of Rs 151.75 crore in Q3 December 2018 as compared to net profit of Rs 221.73 crore in Q3 December 2017. Net sales rose 12.24% to Rs 4377.94 crore in Q3 December 2018 over Q3 December 2017.

Lupin is an innovation led transnational pharmaceutical company developing and delivering a wide range of branded & generic formulations, biotechnology products and APls globally.

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