Lupin tanks 17%, hits over 3-year low as USFDA issues warning letter

Lupin hit over three-year low, tanked 15% to Rs 880 on the BSE in noon deal trade after the company said that the US health regulator issued combined warning letter for its Goa and Indore (Pithampur Unit II) sites. The stock is trading at its lowest level since January 1, 2014.

"The company received a warning letter issued by the US Food and Drug Administration (USFDA) on November 6, 2017 for our formulation manufacturing facilities at Goa and Indore (Pithampur Unit II)," Lupin said in a BSE filing.

While there will be no disruption of exiting product supplies from either of these locations, there will be a delay of new product approvals from these two facilities, it added.

The company had earlier received three Form 483 observations in Goa on April 7, 2017 and six Form 483 observations in Pitthampur (Unit II) on May 19, 2017.

Lupin said it plan to address the concerns raised by the USFDA expeditiously and will work with the USFDA to resolve these issues at the earliest.

At 01:22 PM; the stock was trading 14.5% lower at Rs 885 on the BSE, as compared to 0.57% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than four-fold with a combined 9.48 million shares changed hands on the NSE and BSE so far.

Shares of Lupin touched 52-week low of Rs 890.10, slipping 15 percent intraday Tuesday as company has received warning letter from USFDA.

The company's formulation manufacturing facilities at Goa and Indore (Pithampur Unit II) has received warning letter from USFDA.

The company earlier had received 3 Form 483 observations in Goa on April 7, 2017 and 6 Form 483 observations in Pithampur (Unit II) on May 19, 2017.

The company had responded to all the observations.

"We are deeply disappointed to have received these outcome. While there will be no disruption of existing product supplies from either of these locations, there will be likely to be delay on new product approvals from these two facilities, company said in release.

We plan to address the concerns raised by the USFDA expeditiously and will work with USFDA to resolve these issues at the earliest, it added.

At 13:24 hrs Lupin was quoting at Rs 893, down Rs 141.70, or 13.69 percent on the BSE.

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