Lupin slips after USFDA classifies Pithampur facility as OAI

Lupin fell 1.65% to Rs 850 at 9:20 IST on BSE after the US drug regulator stated that the drug major's Pithampur facility may be subject to regulatory or administrative action.

The announcement was made after market hours yesterday, 23 April 2019.

Meanwhile, the S&P BSE Sensex was up 93.28 points, or 0.24% to 38,658.16.

On the BSE, 18,000 shares were traded in the counter so far compared with average daily volumes of 1.29 lakh shares in the past two weeks. The stock had hit a high of Rs 851.20 and a low of Rs 835.95 so far during the day. The stock hit a 52-week high of Rs 986 on 10 September 2018. The stock hit a 52-week low of Rs 720.40 on 28 March 2019.

Lupin said it has received a letter from the US Food and Drug Administration (USFDA) classifying the inspection conducted at its Pithampur (Indore) Unit-2 facility in January 2019 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. The company is in the process of sending further updates of its corrective actions to the USFDA and is hopeful of a positive outcome.

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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