Sun Pharma declines on buzz of drug recall

Sun Pharmaceutical Industries fell 1.98% to Rs 600.05 at 14:04 IST on BSE on reports the company is voluntarily recalling 2,528 bottles of its generic version of diabetes drug Glumetza from US-based Santarus Inc.

Meanwhile, the BSE Sensex was up 20.58 points, or 0.09%, to 21,940.37.

On BSE, so far 1.18 lakh shares were traded in the counter, compared with an average volume of 1.34 lakh shares in the past one quarter.

The stock hit a high of Rs 611 and a low of Rs 595.05 so far during the day. The stock hit a record high of Rs 653.10 on 3 March 2014. The stock hit a 52-week low of Rs 405.50 on 1 April 2013.

The stock had underperformed the market over the past one month till 7 March 2014, rising 1.80% compared with the Sensex's 7.57% rise. The scrip had, however, outperformed the market in past one quarter, rising 5.16% as against Sensex's 4.40% rise.

The large-cap company has an equity capital of Rs 207.12 crore. Face value per share is Re 1.

According to reports, Sun Pharmaceutical Industries began recalling the bottles of metformin HCL extended-release tables in the United States on 28 January 2014, after it received a customer complaint that one of the bottles contained tablets of epilepsy drug Gabapentin.

The company did not expect a significant impact by the recall, reports said.

The US Food and Drug Administration (USFDA) classified the recall as a "Class II," which signifies a remote chance of severe adverse consequences or death due to the product flaw, reports added.

Sun Pharma's consolidated net profit surged 73.73% to Rs 1531.09 crore on 51.59% increase in total income to Rs 4446.82 crore in Q3 December 2013 over Q3 December 2012.

Sun Pharmaceutical Industries is an international specialty pharmaceutical company with over 72% sales from global markets. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in US, India and several other markets across the world.

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