Lupin shares crash nearly 17 pc, mcap drops by Rs 7,866 cr

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

observations.

"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

BSE.

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.)