Sun Pharma surges 7% as USFDA to lift import alert on Mohali facility

The stock moved higher by 7% to Rs 729 on the NSE on back of heavy volumes.

Sun Pharmaceutical Industries has moved higher by 7% to Rs 729 on the National Stock Exchange (NSE) after the company said the US health regulator will lift the import alert to permit the supply of products from Mohali facility to the US market.

“Sun Pharmaceutical Industries was informed by the US Food and Drug Administration (USFDA) yesterday, that it will lift the Import Alert imposed on the Mohali (Punjab) manufacturing facility and remove the facility from the Official Action Initiated (OAI) status,” the company said in a release on March 14, 2017.

This proposed action will clear the path for Sun Pharma to supply approved products from the Mohali facility to the US market, subject to normal US FDA regulatory requirements, it added.

The Mohali facility was inherited by Sun Pharma as part of its acquisition of Ranbaxy Laboratories in 2015. The US FDA had taken action against the Mohali facility in 2013 when it ordered the facility to be fully subject to Ranbaxy’s Consent Decree of Permanent Injunction. Certain conditions of the consent decree will continue to be applicable to the Mohali facility.

This development illustrates Sun Pharma’s commitment to work closely with the US FDA and strive for 100% cGMP compliance at its manufacturing facilities, the company said.

At 01:53 pm; the stock was up 6% at Rs 724 on the NSE as compared to 1.8% rise in the Nifty 50 index. The trading volumes on the counter more than doubled with a combined 6.39 million shares changed hands on the NSE and BSE.