Lupin hit the ball out of the park! Is the tide turning in favour of the stock after this big announcement?

Nifty, after opening below the 17,300 mark, made a low of 17,242.75. After registering its intraday low, it staged a sharp rebound as it recovered nearly 100 points from the day’s low. Despite this recovery from the lower levels, it has been trading with a modest cut.   

Among the sectoral indices, Nifty Pharma, Nifty Metal, Nifty Energy & Nifty IT are helping the index rebound while on the other hand, Nifty Realty and Nifty PSU Bank are dragging it lower.   

Talking about the sectoral performance, it’s a very interesting day for Nifty Pharma as it turned out to be the top-performing sector and it’s helping the market while they are languishing in red. Another interesting point is that it’s not very usual these days to see pharma stock jumping 8-9 per cent but on Tuesday, Lupin broke this jinx as it soared nearly 9 per cent. Certainly, this might have brought a million-dollar smile to the faces of Lupin investors.   

So, what’s the buzz in the stock? Lupin announced that it has received the establishment inspection report (EIR) from United States Food & Drug Administration (USFDA) for its Goa manufacturing facility after its inspection in September 2021. USFDA has determined that the inspection classification of the facility is voluntary action indicated (VAI).   

Commenting on the development, Nilesh Gupta, Managing Director, Lupin said, “This is a very positive development and we are delighted with the news of the change in classification of our Goa site. Goa site has a very important place in the US market with a number of affordable, quality medicines we supply, and we now look forward to new products flowing out of the site again. We remain committed to meet and exceed global standards of quality & compliance at all our manufacturing facilities globally.”  

The stock has been an underperformer as on a YTD basis, it tanked 2 per cent while on an MTD basis, it surged 8 per cent.