Shares of drug firm Lupin today
plunged nearly 17 per cent, wiping out Rs 7,866 crore from its
market valuation, after the company said it has received
warning letter from the US health regulator for its
manufacturing facilities in Goa and Pithampur, Indore.
The stock tumbled 16.84 per cent to end at Rs 860.50 on
BSE. During the day, it tanked 18.21 per cent to Rs 846.20 --
its 52-week low.
On NSE, shares of the company plummeted 16.88 per cent to
close at Rs 859.90.
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 had earlier received three form 483
observations for the Goa facility on April 7, 2017 and six
form 483 observations for Pithampur (Unit II) on May 19, 2017,
Lupin said, adding that it had responded to all the
"The company has received a warning letter issued by the
United States Food and Drug Administration (USFDA) on November
6, 2017 for our formulation manufacturing facilities at Goa
and Indore (Pithampur Unit II)", Lupin said in a filing to
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.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)