Sun Pharmaceutical‘s shares climbed 3 per cent to over three-month high after the US Food and Drug Administration (FDA) lifted supply restrictions from its Halol plant in Gujarat. Shares of India’s largest drug manufacturer rose as much as 3.75 per cent to a high of Rs 560.75 on Wednesday, a level highest since March 2018. Stocks of Sun Pharma’s research arm — Sun Pharma Advanced Research Company — too jumped almost 5.66 per cent to a high of Rs 437.80.
The drug-maker on Tuesday said that it received the Establishment Inspection Report (EIR) from the US FDA on conclusion for the inspection conducted at the Halol facility during the period February 12-23, 2018. “The agency concluded that the inspection is now closed and the issues contained in the Warning Letter issued in December 2015 have been addressed,” Sun Pharma informed in a regulatory filing to the BSE.
With the lifting of restrictions, Sun Pharma will be able to resume its drug shipments from the Gujarat plant to the US after a two-year ban. “We remain committed to following the highest levels of quality and 24×7 cGMP compliance at all our manufacturing facilities globally,” Dilip Shanghvi, Managing Director, Sun Pharma said, commenting on the development.
Citi Research maintained “neutral” rating on the stock with a price target at Rs 520, Reuters reported. Expect reasonable number of good approvals going forward and a couple of SPRC pipeline products could be approved as these were held up primarily due to compliance issues at Halol, Citi Research said. Reuters said citing a Thomson Reuters Eikon data that fifteen of 39 analysts covering the stock have a “buy” or higher rating, 12 have “hold” while 12 rate it at “sell” or lower.