Sun Pharma up 2% as USFDA issues 9 observations for Halol unit

Moneycontrol Bureau

Shares of Sun Pharmaceutical Industries gained 2 percent intraday Thursday on short covering after the US health regulator issued nine observations for Halol plant. The recovery in share price may also be on hopes that the company may be able to resolve these issues soon. However, the stock fell 6 percent in previous session on reports of 14-page observations letter to the unit.

"At the conclusion of inspection, the USFDA issued a Form-483, citing nine inspectional observations. None of those observations were characterised by the USFDA as repeat observations," the pharma major says today in its filing.

The US Food & Drug Administration inspected the company's Halol facility in Gujarat from November 17 through December 1.

The company will submit responses to USFDA within 15 business days of receipt of Form-483.

"...intends to implement promptly any corrective actions and improvements that may be necessary as a result of the observations and to continue to work cooperatively with USFDA," it says.

Analysts say the USFDA clearance to Halol unit is key to its revenue growth, especially for US business that contributed nearly 50 percent to overall revenue in FY16.

At 14:47 hours IST, the stock was quoting at Rs 677.85, up Rs 13.90, or 2.09 percent on the BSE.