Why Lupin Share Is Falling

03 April 2024: Lupin Limited's share price has seen a decline recently, and there could be a couple of key reasons behind this:

Form 483 Issued by USFDA (March 31, 2023):

The most significant factor impacting Lupin's share price recently was likely the issuance of a Form 483 by the US Food and Drug Administration (USFDA) in March 2023 after an inspection of their Pithampur Unit-2 manufacturing facility.

A Form 483 highlights observations by the USFDA regarding potential compliance deviations from cGMP (Current Good Manufacturing Practice) regulations. This can raise concerns among investors about the quality of Lupin's products and potential delays in product approvals by the USFDA.

Market Conditions (Post-March 2023):

1. Since the USFDA Form 483 issuance in March 2023, the broader market environment might have also played a role. Here are two possibilities:
2. Market Correction: The Indian pharmaceutical sector or the broader Indian stock market could have undergone a correction in the months following March 2023. This could lead to a decline in Lupin's share price even if there haven't been further negative developments specific to the company.
3. Profit Booking: If Lupin's share price had a significant run-up before March 2023, some investors might have taken profits by selling their shares after the USFDA news, leading to a temporary price decline.