Shares of Lupin plunged 6 per cent during Thursday morning trade, a day after it received three observations from the US health regulator for its Aurangabad-based manufacturing facility.
The USFDA carried out an inspection of the plant from May 6 to May 15, Lupin said in in a filing.
Lupin on Wednesday said its standalone net profit for the quarter ended March 31 stood at Rs 542.78 crore, up 85.6 per cent, against Rs 292.46 crore in the corresponding quarter a year ago.
However, brokerages see the growth prospects of Lupin as clouded.
“Lupin is not out of the woods yet,” said Macquarie, maintaining its underperform view on the stock with a target price of Rs 705.
Jefferies has also maintained its underperform view on the stock with a target price of Rs 650. It said the March quarter was weak for the company despite higher exclusivity of sales. While US numbers were strong, other geographies disappointed, the brokerage added.
Meanwhile, the company said it is reviewing the details of a lawsuit filed in a US court accusing 21 generic medicine producers of hatching a conspiracy to fix prices.
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