Lupin is down in the red today morning, going down over 3.5% to Rs.811; it has recovered from this low point but remains down at Rs.822 levels.
The stock is down on two counts – its poor show for Q3FY19 and its unit coming under FDA radar.
The US FDA has issued observations for its Pithampur unit, citing various issues like lack of training of employees involved in packaging, making and processing, mismatch between findings/follow-up and written records, no explanation for unexplained discrepancy, improper designs of equipments and lack of required controls on computers and other systems. Naturally, observations + FDA causes stress and traders prefer to stay away.
The company’s performance for Q3FY19 was also not very encouraging. The company reported a net loss of Rs.150 crore v/s profit of Rs.222 crore (YoY). This was mainly on account of a one-time charge of Rs.342 crore, related to Perindopril litigation.
Revenue rose over 12% to Rs.4378 crore.