Lupin stock slumps 18% after USFDA issues double whammy

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Updated: November 7, 2017 2:17:32 PM

Shares of the Mumbai-based pharmaceutical company Lupin dived nearly 18% to hit the 52-week low on Tuesday after the US drug regulator issued warnings for company's two sites.

The stock of the drugmaker tanked as much as 17.73% to hit the 52-week low of Rs 851.2 on BSE. (Image: Reuters)

Shares of the Mumbai-based pharmaceutical company Lupin dived nearly 18% to hit the 52-week low on Tuesday after the US drug regulator issued warnings for company’s two sites. USFDA issued a combined warning letter for company’s Goa and Indore (Pithampur Unit II) sites. The stock of the drugmaker tanked as much as 17.73% to hit the 52-week low of Rs 851.2 on BSE. A huge volume is observed in the trading of Lupin shares, as more than 1.85 crore shares have exchanged hands on both BSE and NSE out of which 1.66 crore shares on NSE alone, as at 2 pm. Lupin is the seventh-largest company by market capitalisation and is a component of both the key indices Sensex and Nifty.

“We are deeply disappointed to receive this outcome. While there will be no disruption of existing product supplies from either of these locations, there will likely be a delay of new product approvals from these two facilities,” Lupin said in an exchange filing. “We uphold quality and compliance issues with utmost seriousness and remain fully committed to be compliant with cGMP quality standards across all these facilities. We plan to address the concerns raised by the USFDA expeditiously and will work with the USFDA to resolve these issues at the earliest,” Lupin added.

Following the slump in the shares of Lupin, the key equity indices Sensex and Nifty slipped up to 0.8%. However, Indian stock markets hit a yet another lifetime high on Tuesday led by the record high closing of key indices of US — Dow Jones Industrial Average, S&P 500, NASDAQ — on Wall Street and mixed sentiments about Q2 corporate earnings. The benchmark Sensex shuttled between 33,427.06 and 33,865.95 points while the broader Nifty 50 index tripped 90 points to mark a day’s low at 10361.8 points. The benchmark Sensex index came under pressure in mid-morning trade and tumbled further after the Lupin shares plunged up to 18%.

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