Lupin gets back on the "good" radar

Lupin opened pretty strong today morning at Rs.1700 level and going on to an intra day high at Rs.1710, up over 3%. Volumes too have surged over 1.5 times on the counter.

The stock’s market cap rose to a jaw dropping Rs.75,388 crore.

The stock is buzzing today, reacting to the news which came in yesterday, just a few minutes before market closed.

The company finally had major relief on the US FDA front. The company said that it has got the Establishment Inspection Report (EIR) from the FDA for its Goa plant. The report said that the inspection of the facility which was done in July 2015 is finally closed.

It has made 18 observations and of this, nine have been cleared by the FDA. This is big as these observations were mainly on counts of cross contamination due to free movement and test records maintenance.

This EIP report is very important for the company as the Goa facility contributes to 50% of Lupin’s sales to USA.

The company has said that report from the inspections done in March 2016 is still under review.