OAI letter from USFDA for Lupin's Mandideep facility won't impact future earnings, says HDFC Sec

The US Food and Drug Administration (USFDA) has classified the inspection at Lupin's Mandideep facility in Madhya Pradesh (MP) as 'official action indicated' (OAI). New approvals from this unit may be withheld. Amey Chalke, a research analyst at HDFC Securities, spoke to CNBC-TV18 about the development.

“I don’t see any impact on the future earnings considering this is an Active Pharmaceutical Ingredients (API) plant and it does not have any pending filings from this plant for the US market. So if it is a warning letter, which is a very high probability, then the existing sales would not be affected and anyways there won’t be any new product sales coming in from that plant. So we don’t see any impact on our future earnings,” Chalke said on Thursday.