Lupin slumps after reports of receiving USFDA observations for Mandideep facility

Lupin slumped 10.67% to Rs 1,335.60 at 11:35 IST on BSE after reports suggested that it has received a Form 483 (observation letter) from US drug regulator, USFDA for its Mandideep manufacturing facility.

Meanwhile, the S&P BSE Sensex was down 112.86 points or 0.45% at 24,853.54.

A sharp fall on the counter was accompanied by high volumes. On BSE, so far 5.9 lakh shares were traded in the counter as against average daily volume of 2.81 lakh shares in the past one quarter. The stock hit a low of Rs 1,294.05 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 1,494 so far during the day. The stock had hit a record high of Rs 2,127 on 6 October 2015. The stock had underperformed the market over the past one month till 28 March 2016, dropping 13.45% compared with the Sensex's 7.83% rise. The scrip had also underperformed the market in past one quarter, falling 18.79% as against Sensex's 4.1% fall.

The large-cap company has equity capital of Rs 90.12 crore. Face value per share is Rs 2.

Lupin's active pharmaceutical ingredient (API) and formulations units of Mandideep manufacturing facility in Madhya Pradesh have reportedly received two observations each after the facility was inspected by United States Food & Drug Administration (USFDA) between 8 February to 19 February 2016. Mandideep manufacturing facility is the second largest revenue contributor to the company's US business after its Goa plant, report said. The revenue impact could be more than $200 million and the company may take 18 months to address the issues mentioned in the Form 483 as they are serious in nature, a domestic brokerage reportedly added.

On consolidated basis, Lupin's net profit fell 11.9% to Rs 529.75 crore on 6.8% growth in net sales to Rs 3357.66 crore in Q3 December 2015 over Q3 December 2014.

Lupin is a pharmaceutical company producing and developing a wide range of branded & generic formulations, biotechnology products and APIs globally. The company is a significant player in the cardiovascular, diabetology, asthma, pediatric, CNS, GI, anti-infective and NSAID space and holds global leadership positions in the anti-TB and cephalosporin segment.

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