Tue. May 21st, 2019

Lupin Share Prices: Lupin shares fall 6% on USFDA observations

NEW DELHI: Shares of Lupin plunged 6 per cent during Thursday morning trade, a day after it received three observations from the US health regulator for its Aurangabad-based manufacturing facility.

The USFDA carried out an inspection of the plant from May 6 to May 15, Lupin said in a BSE filing.

Lupin on Wednesday said its standalone net profit for the quarter ended March 31 stood at Rs 542.78 crore, up 85.6 per cent, against Rs 292.46 crore in the corresponding quarter a year ago.

However, brokerages see the growth prospects of Lupin as clouded.

“Lupin is not out of the woods yet,” said Macquarie, maintaining its underperform view on the stock with a target price of Rs 705.

The brokerage has lowered its estimate of earnings per share (EPS) for FY20 and FY21 by 18 per cent and 12 per cent, respectively.

Jefferies has also maintained its underperform view on the stock with a target price of Rs 650. It said the March quarter was weak for the company despite higher exclusivity of sales. While US numbers were strong, other geographies disappointed, the brokerage added.

Meanwhile, the company said it is reviewing the details of a lawsuit filed in a US court accusing 21 generic medicine producers of hatching a conspiracy to fix prices.

“We have received a copy of the lawsuit filed against the generic drug manufacturers and are reviewing the details of the same,” Lupin said in a regulatory filing.

Shares of Lupin traded 4.99 per cent down at Rs 744 on BSE around 10:20 am.

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