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Lupin stock falls over 18% after USFDA issues warning letter

Lupin stock falls over 18% after USFDA issues warning letter

The stock is down 41 percent since the beginning of this year. On an yearly basis, the stock fell 43.3 percent. The firm said there was a likely delay of new product approvals from Goa, Pithampur facilities but added there will be no disruption of existing product supplies from either of these locations.

The Lupin stock fell over 18 percent in afternoon trade after the pharma firm said drug regulator US FDA has issued a warning letter to company's Goa and Indore (Pithampur Unit 2) sites.

At 3:19 pm, the stock was trading nearly 17 percent or 174 points lower at 860 level on the BSE. The stock hit a fresh 52-week low of 846.20 level today.

The stock is down 41 percent since the beginning of this year. On an yearly basis, the stock fell 43.3 percent.

The firm said there was a likely delay of new product approvals from Goa, Pithampur facilities but added there will be no disruption of existing product supplies from either of these locations.

In April 2017, the firm had received three form 483 observations in Goa on April 7,2017 and six form 483 observations in Pithampur (Unit II) on May 19, 2017. The company had responded to all allegations, it said.

The stock was the biggest loser among the bluechips on both the key indices. Following the steep decline in the stock price, the company's market valuation also eroded by Rs 7,866.28 crore to Rs 38,884.72 crore. In terms of equity volume, 28.92 lakh shares of the company were traded on BSE and over 2 crore shares changed hands on NSE during the day.

The company is deeply disappointed to have received this outcome, it said, adding that while there will be no disruption of product supplies from either of these locations, there is likely be a delay of new product approvals. Lupin however did not share the concerns raised by the US health regulator in its warning letter.