Sun Pharmaceutical shares dipped as much as 7.40 per cent in the early trade on Monday after the pharma major on Saturday said that it has received a warning letter from the USFDA over violation of manufacturing norms in its facility at Halol in Gujarat.
At 9.30 am, the share price of Sun Pharma was trading 6.65 per cent down at Rs 737.90. The scrip opened at Rs 740.10 and had touched a high and low of Rs 744 and Rs 732, respectively, in trade so far. Later, scrip of the drug major settled 4.55 per cent down at Rs 754.45
The warning letter follows inspection of the facility in September 2014 by US Food and Drug Administration (USFDA) inspectors.
Post the September 2014 inspection, the USFDA has withheld future product approvals from the Halol facility.
Commenting on the development, Sun Pharma managing director Dilip Shanghvi said, “While our team is working hard to ensure that the commitments made to the USFDA in September 2014 are fully completed, we will continue to cooperate with the USFDA and undertake any additional steps necessary to ensure that the US agency is completely satisfied with our remediation of the Halol facility.”
In a BSE filing, Sun Pharma said, “Sun Pharma and the Halol facility will continue to supply important drug products to meet its obligations to its customers and the patients who use its drugs in the United States and around the world.”
In the past one year, the share price of Sun Pharma fell 2.74 per cent to Rs 790.45 on December 18. Sensex fell 5.93 per cent during the same period.
For the quarter ended September 2015, Sun Pharma posted a consolidated net profit of Rs 1,106.66 crore, down 46.02 per cent, against Rs 2,050.22 crore in the corresponding quarter a year ago.
(With inputs from agencies)