Lupin shares tank over 10% intraday in today’s trade, here is why

By: | Updated: March 29, 2016 4:21 PM

In the past one year, share price of Lupin tanked 25.21 per cent to Rs 1495.10 till March 28, whereas the benchmark index Nifty Pharma index slipped 13.73 per cent during the same period.

lupin shares, nifty pharmaThe share price of Lupin was trading 11.22 per cent down at Rs 1,327.45 (at 11.00 am). The scrip opened at Rs 1476.20 and has touched a high and low of Rs 1494 and Rs 1294.05, respecively, in trade so far. (Photo: Reuters)

Lupin shares hit their fresh 52-week low in Tuesday’s trade after reports that USFDA observations at Mandideep unit are serious in nature. The unit was inspected by USFDA from Feb 8-19 last month.

The share price of Lupin was trading 11.22 per cent down at Rs 1,327.45 (at 11.00 am). The scrip opened at Rs 1476.20 and has touched a high and low of Rs 1494 and Rs 1294.05, respectively, in trade so far.

In a reply clarification to BSE, Lupin said, “There is speculation about a USFDA audit at our Mandideep facilities. We had an audit at our Mandideep location from Feb 2 to Feb 19. There were total 3 observations. As the site has both dosage form facility and API facility, 2 separate form 483s were issued with 2 observations each. 1 of the observations was repeated in both the forms at it is relevant to both operations. We believe that these observations are minor in nature and have already addressed these observations. We don’t expect any disruption to product supply from our Mandideep location.”

Later, Lupin shares closed 6.27 per cent down at Rs 1,401.45.

Around 6.26 lakh shares exchanged hands on BSE on Tuesday so far as against an average daily volume of 3.76 lakh shares in the previous two weeks.

For the quarter ended December 2015, Lupin reported consolidated net profit of Rs 529.75, down 11.92 per cent, against Rs 601.45 crore in the same quarter last year.

In the past one year, share price of Lupin tanked 25.21 per cent to Rs 1495.10 till March 28, whereas the benchmark index Nifty Pharma index slipped 13.73 per cent during the same period.

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