Lupin shares continued their upward trend after the company's Goa facility received Establishment Inspection Report (EIR) from the US health regulator, USFDA, for an inspection done in July last year.
Lupin shares continued their upward trend on Friday as well and surged over 3 per cent in early trade after the company’s Goa facility received Establishment Inspection Report (EIR) from the US health regulator, USFDA, for an inspection done in July last year.
At 10.23 am, shares of the company were trading 0.77 per cent up at Rs 1670. The scrip opened at Rs 1700 and has touched a high and low of Rs 1710 and Rs 1652.25, respectively, in trade so far.
In a BSE filing, Lupin said, “it has received notification that the inspection carried out by the United States Food and Drug Administration (USFDA) in July 2015 at its Goa facility is now closed and the agency has now issued an EIR.”
It further added that the responses from March’s USFDA inspection and updates thereafter are still under the review of the agency.
According to brokerage Angel Broking, “the Goa plant is an important part of the company operations as it accounts for around 50 per cent of the US sales for the company and is involved in the production of oral and injectabale items. The US market is a significant revenue contributor to the company and accounted for around 43 per cent of the overall revenues in FY16. And hence this comes as a relief for the company.”
The brokerage house maintains ‘BUY’ rating on the stocks at a target price of Rs 1809.
Later, shares wiped off their initial gains and closed 1.21 per cent down at Rs 1637.30 after the pharma major announced that the US FDA inspected its Dabhasa facility from June 29 – July 6 2016 and issued two observation.