Lupin dips by 9% over USFDA concerns
The Dollar Business Bureau
Amid concerns over USFDA’s observations on its Goa facility, Lupin Pharma’s stocks dipped by 9% on Friday.
Though the Mumbai-based pharma, on Thursday, reported 47% rise in net profit and 34% increase in sales, including its US business, the stocks saw a dip.
While the drug making company said that its growth in US market will continue, it failed to attract investors. On Friday, the BSE stocks of the company closed at Rs.1,505.15, which means a fall of 9% when compared to the previous close.
In the last three months, the stocks of Lupin dipped by 20%.
Earlier in March, nine critical observations were made by USFDA on the Goa plant of Lupin. The company is likely to resolve the issues within three-six months. Any kind of delay in resolutions will impact the approvals of new drug and leave adverse impact on its sales.
The management of the company, informed the investors on Thursday, that 1/3rd of its pending filings with US drug regulator were from the Goa facility.
The company also stated that the process of site transfer of existing products to facilities in Aurangabad, Indore and US had begun.
Besides the Goa plant concerns, the rise in expenses related to interest costs, amortization, R&D due in FY17 were posing hurdles before the investors.
In FY17, the amortization and depreciation charges may be doubled followed by the acquisition of Gavis.
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