Sun Pharma gains after over 5% fall in four days

The stock has declined 5.3% in past four trading sessions till yesterday compared to less than 2% fall in Sensex.

Sun Pharmaceutical Industries is trading higher by 1.4% at Rs 613 after the company said it has addressed the United States Food and Drug Administration’s (USFDA) concerns about quality control breaches at a U.S. subsidiary that was shut down by the regulator for three years because of manufacturing flaws.

The stock opened at Rs 603 and touched high of Rs 615 on the BSE. A combined 178,000 shares have changed hands on the counter till 0950 hours on BSE and NSE.

Meanwhile, the pharmaceutical stock has underperformed the market by falling 5.3% in past four trading sessions till yesterday compared to less than 2% decline in benchmark index.

Sun’s Detroit-based Caraco Pharmaceutical Laboratories Ltd. unit, said in August 2012 it was allowed to resume drug manufacturing, but had received notifications from the FDA following inspections in January and May this year, the PTI report suggests.

This development is positive as according to the company it has resolved issues from its end and hence it found adequate the same should aid the facility getting approval, says analyst at Angel Broking in a note.