Rakesh Jhunjhunwala stock: This pharma major shares jump 10% as company receives EIR from USFDA

Amid good volumes, Rakesh Jhunjhunwala-backed pharma major Lupin shares jumped 10 per cent to touch the day’s high level of Rs 972.5 per share on the BSE intraday trade on Tuesday.

The surge in the stock is mainly on the back of receiving the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for its Goa manufacturing facility, Lupin said, adding further that the facility was inspected in September 2021 by USFDA.

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The drugmaker also said, that the US FDA has determined that the inspection classification of the facility is Voluntary Action Indicated (VAI).

“This is a significant milestone as we build back our reputation of being best-in-class in Quality and Compliance, and are committed to manufacture and supply products of the highest quality from all our manufacturing sites,” Vinita Gupta, CEO, Lupin said in a comment.

Similarly, Nilesh Gupta, Managing Director, Lupin mentioned, “This is a very positive development and we are delighted with the news of the change in classification of our Goa site.”

He added, “The Goa site has a very important place in the U.S. market with the number of affordable, quality medicines we supply, and we now look forward to new products flowing out of the site again.”

Lupin has 15 manufacturing sites, 7 research centres, more than 20,000 professionals working globally.

The counter had touched a 52-week low of Rs 854 on December 7, 2021, and a 52-week high of Rs 1,267.50 on June 2, 2021. The stock has underperformed the market by falling 18 per cent in past six months despite of today’s gain, as compared to 10.5 per cent rally in the S&P BSE Sensex. 

Ace investor Rakesh Jhunjhunwala, who is also termed as the Big Bull of the Indian stock market, has reduced its stake below 1 per cent in the company during September-end quarter. The celebrity investor had held a 1.6 per cent stake in the company for the last eight quarters.