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  1. Sun Pharma drops 5% after reports of Halol plant getting USFDA observations; top drag on Nifty Pharma index

Sun Pharma drops 5% after reports of Halol plant getting USFDA observations; top drag on Nifty Pharma index

Sun Pharma share price: Following the buzz, Sun Pharma shares lost nearly 5.5% on the National Stock Exchange, emerging as the top loser on the Nifty Pharma index.

By: | Published: September 7, 2018 12:46 PM
sun pharma, sun pharma stock Sun Pharma drops 5% after reports of getting 6 USFDA observations.

Sun Pharma share price: Shares of Sun Pharmaceutical Industries slumped over 5% on the domestic bourses on Friday after media reports said the US Food and Drug Administration (FDA) has issued six observations related to the test procedures on the drugmaker’s Halol plant inspections during August 27-31. Following the buzz, Sun Pharma shares lost nearly 5.5% on the National Stock Exchange, emerging as the top loser on the Nifty Pharma index.

In early morning trade on Friday, Sun Pharma shares dropped by 5.5% to Rs 640 per share on the National Stock Exchange — marking its biggest daily percentage loss since May. However, the shares trimmed some of its losses in afternoon deals to trade 3.28% lower at Rs 655.20 per share. On the BSE, Sun Pharma shares fell 5.3% to Rs 640.95 per share in early trade and was the top Sensex loser. Sun Pharma stock has gained over 12% this year.

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Reports on CNBC-TV18 said the US FDA has issued six observations for its Halol unit in Gujarat, which include aspects such as lack of appropriate test measures for lab controls, as well as some procedural issues. In addition, the report quoted observations such as procedures designed to prevent objectionable microorganisms were not followed, written stability programme did not include sample size based on statistical data, and cleaning and maintenance of equipment did not see any written procedures being followed as well.

According to a Reuters report, the company’s key Halol plant in western India had gained US clearance earlier this year. The report quoted Surajit Pal, an analyst at Prabhudas Liladher, as saying that although the observations will not have a big impact financially, the sentiment will become negative. “Management needs to be more serious about one of the key contributors of their business,” he added.

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