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Sun Pharma Share Price Falls 3 Percent on 11 Observations from USFDA for Dadra Unit

Sun Pharma Share Price Falls 3 Percent on 11 Observations from USFDA for Dadra Unit

Sun Pharmaceutical Industries share price fell 3 percent. Investors turned cautious as sources told CNBC-TV18 that company’s Dadra unit has received 11 observations from the US health regulator after an audit.

The nature of the observations served by US FDA is not clear, according to sources. Inspection of the plant by USFDA was concluded in the last week.

Dadra site is the biggest unit after Halol for Sun Pharma for US supplies.

With these observations, the problem for the company may aggravate, says Surajit Pal of Prabhudas Lilladher. Its Halol plant has already been under import alert, which contributed 40 percent to US sales in FY16.

However, the only positive for Sun Pharma is that it is cash rich, he adds. According to him, the pharma major can push growth via inorganic means. He has an accumulate rating on the stock.

Meanwhile, last week the US Food & Drug Administration had said it would lift the import alert imposed on Mohali (Punjab) manufacturing facility and would also remove the facility from official action initiated (OAI) status.

Mohali, which had been under import alert since September 2013, is an oral solids plant and capacity-wise is understood to be as big as Ranbaxy’s Ohm Labs facility in the US.

At 09:51 hrs Sun Pharmaceutical Industries was quoting at Rs 675.50, down Rs 16.80, or 2.43 percent.

Source: Press Release
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