Lupin slumps to 4-year low as USFDA issues warning letter for Goa, Indore plants

NEW DELHI: Shares of Lupin tumbled to a four-year low on Tuesday after the drug maker said it has received a warning letter from the USFDA for Goa and Indore plants.

The company said that the warning letter was issued on Monday for Pithampur unit II of Indore and its Goa plant. While the Goa plant was issued three Form 483 observations on April 7, the Indore unit was slapped with six observations on May 19.

Lupin latter responded to the observations but USFDA was not satisfied with the response.

Following the development, the stock fell 16.48 per cent to end the day at Rs 860.50 on BSE. The news had a rub off on other pharma stocks, with BSE healthcare index tumbling over 3.51 per cent.

"We are deeply disappointed to have received this outcome. While there will be no disruption of existing product supplies from either of these locations, there will likely be a delay of new product approvals from the US," Lupin said in a regulatory filing.