Pharma stocks continued to fall even after witnessing a sharp slide on Tuesday. Lupin, which lost 7 per cent on Tuesday was down another half per cent. There were worries over US FDA concerns over one of the plants of the company.
After being a darling of investors though 2014 and 2015, pharma stocks have seen a sharp correction in the last few months. Worries over warnings to several companies from the US FDA have hit these stocks.
Dr Reddys, Lupin, Sun Pharma, Cadilla Health and a few others have all received adverse communication from the US FDA.
The US is a major market for exports for most of the Indian pharma companies and warning letters can hit exports.
The companies have to be very careful in adopting best manufacturing practices and also in maintainence of records.