Evaluate’s pharmaceutical sector 2017 review was released earlier this week.
An email query sent to Lupin remained unanswered.
Major health care indices in the US, Europe, and Japan gained in 2017 as fears about the economic impact of Donald Trump’s US presidency failed to materialise, the report shows. In comparison, the BSE health care index remained flat, while the Nifty Pharma fell 6.9 per cent in 2017.
The scrips of Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, and Glenmark also fell during the year.
“The warning letters were a setback. It came as a surprise to the management. Even investors were expecting that the Goa and Indore plants will be cleared in the inspection,” said Amey Chalke, analyst with HDFC Securities.
A delay in lucrative product approvals for the company was another overhang.
The market is betting big on the launch of key drugs like Levothyroxine and early resolution of regulatory issues.
Chalke expects the growth trajectory to resume in 12 months. The company is seeking help from consultants to resolve the issues of warning letters.