USFDA re-inspection weighs on Sun Pharma stock

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Mumbai | Published: February 22, 2018 4:06:51 AM

Shares of Sun Pharmaceutical closed the session in the red on Wednesday, as whispers of an adverse outcome of a US Food and Drug Administration (FDA) inspection at its Halol unit in Gujarat spooked investors.

USFDA, Sun Pharma stock, FDA, Sun Pharmaceutical Industries, Sun Pharmaceutical Industries stock, US, pharmaceutical companyUS supplies of Sun Pharma have been hit over the past year after the FDA found violations in manufacturing practices at Halol factory in Gujarat. (Reuters)

Shares of Sun Pharmaceutical closed the session in the red on Wednesday, as whispers of an adverse outcome of a US Food and Drug Administration (FDA) inspection at its Halol unit in Gujarat spooked investors. The stock ended the session 6.19% lower at Rs 524.75, with the pharmaceutical company losing Rs 8,341 crore of its market capitalisation. The market cap of Sun Pharma stood at Rs 1.25 lakh crore on Wednesday, against Rs 1.34 lakh crore on Tuesday. “The stock could have tanked because the current inspection at Halol may not be going well. The inspection goes on for around 10-14 days. But if investors expect it to go badly then they are likely to sell,” said an analyst on condition of anonymity.

US supplies of Sun Pharma have been hit over the past year after the FDA found violations in manufacturing practices at Halol factory in Gujarat. Sun Pharma’s US business has been facing uncertainty as it has been struggling to fix quality control problems at Halol plant. Interestingly, Sun Pharmaceutical Industries stock was one of the most bought large-cap stocks by mutual funds in the month of January, showed Morningstar data.

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