Credit Suisse has maintained its neutral stance on the stock with a target cut to Rs 770 from Rs 850, implying a downside of over 9 percent.
Shares of Lupin slipped more than 2 percent in the early trade on Monday as foreign brokerage Credit Suisse seeing over 9 percent fall in the stock on the back of massive volume loss in diabetes franchise in the US.
Credit Suisse has maintained its neutral stance on the stock with a target cut to Rs 770 from Rs 850, implying a downside of over 9 percent.
It said that there is massive volume loss in diabetes franchise in the US and has cut earnings and target. Further, it highlighted that IMS data shows that high volume loss is seen for the company in Fortamet and Glumetza.
It also observed that the current volume decline in Fortamet is yet to factor in Nostrum entry and is a further risk.
Going forward, it sees earnings momentum to be weak over the next four quarters. Having said that, the next key event is the re-inspection of Goa and Indore plants.
The USFDA is likely to start inspection at company's Nagpur plant from May 7, sources said.
At 09:16 hrs Lupin was quoting at Rs 784.55, down Rs 10.15, or 1.28 percent on the BSE.
The share price declined over 38 percent in the last one year.
Posted by Rakesh Patil