Lupin tanks as USFDA issues multiple observations

The USFDA completed inspection of pharma major, Lupin’s units at Mandideep location and issued multiple observations over three units located there. Shares of Lupin have thus plunged intraday on Wednesday.

Lupin’s Mandideep location houses the company’s cardiovascular Pril API facilities, Cephalosporin API facilities and Cephalosporin Solid Oral Dosage Form facility. Unit-1, the Cephalosporin facilities closed with 10 observations. The inspection at Unit-2, the Cardiovascular Pril API facilities closed with 4 observations and 8 observations issued at the Cephalosporin Solid Oral Dosage Form facility.

The company has stated that the observations are however largely procedural in nature with some gaps identified in the aseptic processing areas of the Cephalosporin API block and the company is confident of addressing them satisfactorily.

On Wednesday, the shares of Lupin opened at Rs.889.20 per share as against Tuesday’s close of Rs.888.05. The shares of the company closed at Rs 859.05, down by a whopping 3.27 per cent. The intraday high was Rs 889.20 and intraday low was Rs. 849.60 per share on the BSE. Its 52-week high was Rs. 986 and 52-week low was Rs. 723.55 per share on the BSE. The BSE Sensex closed at 35,884.41 level, down by 0.69 per cent.