Views on Lupin - USFDA update - Angel Broking

Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking) on Lupin- USFDA update:

"Lupin has announced that the USFDA inspected its Dabhasa facility from 29th June to 6th July 2016. At the end of the inspection two 483s were issued. Both the observations are minor in nature and corrective and preventive actions were shown to the inspectors during the inspection. The inspection has been classified as Voluntary Action Indicated (VAI). A VAI inspection classification occurs when objectionable conditions or practices were found that do not meet the threshold of regulatory significance. Inspections classified with VAI violations are typically more technical violations.

The Dabhasa site has state of art in manufacturing wide range of products in various categories like CRAMS, Pharmaceuticals Intermediates and APIs for international as well as domestic sale. It has well equipped and multi range facilities to deliver the products in the range of developmental quantity to commercial scale. Facilities are well designed and qualified to meet the cGMP requirement and having a competent workforce for the need. It is also backed up with onsite R&D centre. Site is emerging as one of the facility for manufacturing APIs for advance markets. Currently given the nature of the violations and given that it's an API plant, we don't believe we need to change our estimates. We maintain our BUY rating with a price target of INR 1809."

Shares of LUPIN LTD. was last trading in BSE at Rs.1637.3 as compared to the previous close of Rs. 1657.3. The total number of shares traded during the day was 397416 in over 19459 trades.

The stock hit an intraday high of Rs. 1710 and intraday low of 1625. The net turnover during the day was Rs. 659053337.

Source : Equity Bulls

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