Lupin tumbles 3%

Lupin tumbled down today to Rs.742, slipping down almost 3%. It continues to trade around Rs.744 currently but the over all mood on the counter is not positive.

Nowadays if a pharma company is down it is almost invariably on account of the FDA. Ditto here too.

Today morning, the company announced that it has received a communication from the U.S. FDA classifying the inspection conducted at its Toropur manufacturing {API) facility between September 16 to September 20,2019 as Official Action Indicated (OAI).

The inspection at the Toropur facility had closed with three observations.

The Company does not believe that this inspection classification will have on 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.