Sun Pharma recovers lost ground on bourses

Written by Agencies | Mumbai | Updated: Jun 27 2009, 01:02am hrs
Recovering some of its early losses, Sun Pharmaceuticals on Friday closed lower by about 12 per cent on the Bombay Stock Exchange after reports that the US health regulator had seized drugs manufactured by Caraco, in which the domestic pharma company holds a majority stake.

Scrip of Sun Pharma settled at Rs 1,140.45, down by 12.17 per cent over the previous close on BSE. During the trade the scrip had plunged 17.59 per cent to touch an intra-day low of Rs 1,070.

The US Food and Drug Administration (FDA) on Thursday seized all drug products manufactured by Caraco Pharmaceutical at the firm's Michigan facilities in Detroit on alleged violations of the manufacturing standards.

On the National Stock Exchange, stocks closed with a loss of 11.64 per cent at Rs 1,141.15. It had touched the intra-day low of Rs 1,050, down 18.70 per cent from its previous close. Over 34 lakh shares were traded on the bourses.

Shares of Caraco plunged 43 per cent to USD 2.39 on the American Stock Exchange on Thursday.

In 1997, Sun Pharma acquired a majority stake in Caraco and subsequently, the two companies entered into a technology transfer agreement.