Lupin down in the red

It was only yesterday that Lupin rose over 4% after Morgan Stanley upgraded its rating on the stock to overweight from equal-weight earlier and also increased price target by 40%.

And today, the stock price opened at a loss of 3% at Rs.864.30 and touched an intraday low of Rs.836, down 3.3%.

The company announced yesterday late evening that it has received a letter from the U.S. FDA classifying the inspection conducted at its Pithompur (Indore) Unit-2 facility in January 2019 as Official Action Indicated (OAI).

The U.S. FDA has stated that this facility may be subject to regulatory or administrative action and that it may withhold approval of any pending applications or supplements in which this facility is listed.

The company does not believe that this classification will have an impact on disruption of supplies or the existing revenues from operations of this facility.

The company is in the process of sending further updates of its corrective actions to the U.S. FDA and is hopeful of a positive outcome.