Mumbai: The Lupin Ltd lost nearly 17% in the market cap on Tuesday soon after the pharmaceuticals company announced, in a stock filing, that it has received a warning letter on Monday issued by the USFDA (United States Food and Drug Administration) pertaining to its two manufacturing facilities located in Goa and Indore (Pithampur Unit II).
Lupin shares closed at Rs 860.50, 16.84% lower than the previous session's closing on BSE. On NSE, the shares closed at trading at Rs 860.10, 16.86% lower than the previous day's closing.
"We had received three form 483 observations in Goa on April 7 and six Form 483 observations in Pithampur (unit II) on May 19. We had responded to all the observations," the company wrote in the stock filing.
The company, however, tried to calm the tempers by saying, "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 these two facilities."
The stock had closed at Rs 1,034.70 on Monday and opened on Rs 1,041 on BSE on Tuesday. It hovered in the range of Rs 1,044 and Rs 851 during the day.The BSE healthcare index falls 3.07% on BSE to trade at 14101.43 points, while the Nifty pharma index declines by 3.88% on NSE after Lupin shares came crashing.