Lupin - U.S. FDA Warning Letter For Somerset Facility Will Not Disrupt Supplies Or Revenues: Centrum Broking
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Centrum Broking Report
Lupin Ltd. has received a warning letter from the U.S. Food and Drug Administration for its Somerset, New Jersey facility, which contributes ~5% of its global sales.
The two-month long inspection was due to an active Covid-19 case in the facility.
The warning letter would not disrupt supplies or impact existing revenues from this facility.
It is noteworthy that the U.S.FDA has had similar observations on this facility earlier and other facilities of the company.
We anticipate a 12-18 months’ resolution time as of now. Also, expect additional remediation costs would impact margins.
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