Lupin shares down nearly 3%, mcap dips by Rs 1,497 crore on USFDA observations
Shares of Lupin today fell by nearly 3% after the US health regulator issued three observations for its Goa plant.
The stock lost 2.49% to end at Rs 1,304.45 on BSE. During the day, it declined 2.82% to Rs 1,300.05, its 52-week low.
At NSE, shares of the company went down by 2.58% to close at Rs 1,303.80.
The company’s market valuation too declined by Rs 1,497.42 crore to Rs 58,913.58 crore.
The stock was the worst hit among the bluechips on both the indices, Sensex and Nifty.
“Recently, the company’s manufacturing facility underwent an inspection by the USFDA...subsequently to that USFDA issued Form 483 citing three observations,” Lupin Ltd had said in a regulatory filing on Friday.
The company is in the midst of putting together a response to address the said observations, it added.
As per the USFDA, observations are made in Form 483 when investigators feel that conditions or practices in the facility are such that products may become adulterated or render injuries to health.
The FDA Form 483 notifies the company’s management of objectionable conditions.