Shares of Lupin dipped 5 per cent to Rs 1,173 on the BSE in intra-day trade on Monday after the pharmaceutical company said it has received a Warning Letter (WL) for its manufacturing plant at Somerset, New Jersey. This is the only manufacturing plant of Lupin located in the US.
However, Lupin said the company does not believe that the warning letter will have an impact on disruption of supplies or the existing revenues from operations of this facility.
At 09:57 am, Lupin was trading 3 per cent lower at Rs 1,194, as compared to 0.37 per cent decline in the S&P BSE Sensex. A combined 1.4 million shares have changed hands on the counter on the NSE and BSE, so far.
Lupin shares drop nearly 3% on USFDA warning letter for Somerset facility
June 14, 2021
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The regulator had inspected the Lupin Somerset site from September 10, 2020 to November 5, 2020
Shares of drug major Lupin fell nearly 3 per cent during the morning trade on Monday after the company received a warning letter from the US FDA for its Somerset, New Jersey facility.
At 11:29 am, Lupin was trading at ₹1194.60 on the BSE, down ₹35.65 or 2.90 per cent. It had opened at ₹1194.00 as against the previous close of ₹1230.25. It hit an intraday high of ₹1202.10 and a low of ₹1173.35.
ON the NSE, it was trading at ₹1,194.50, down ₹35.85 or 2.91 per cent.
Edelweiss has a price target of Rs 29 on the stock. Kotak Institutional Equities finds it worthy of Rs 34. CLSA and Motilal Oswal Securities pegged the stock value at Rs 40 each.
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