Sun Pharma slides as USFDA issues import alert for Karkhadi unit

Sun Pharmaceutical Industries declined 3.97% to Rs 580.05 at 13:53 IST on BSE, after the US FDA issued an import alert for the company's facility located in Gujarat

Meanwhile, the BSE Sensex was up 75.15 points, or 0.34%, to 21,931.37

On BSE, so far 4.84 lakh shares were traded in the counter, compared with an average volume of 1.40 lakh shares in the past one quarter.

The stock hit a high of Rs 610 and a low of Rs 565.60 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 12 January 2014, falling 1.15% compared with the Sensex's 6.88% rise. The scrip, however, outperformed the market in past one quarter, gaining 4.98% as against Sensex's 4.45% rise.

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

Sun Pharmaceutical Industries announced during trading hours today, 13 March 2014, that the US Food and Drug Administration (USFDA) issued an import alert for the company's cephalosporin facility located at Karkhadi, Gujarat in India. The import alert was issued by the USFDA as a follow up to the last inspection of the facility, during which some non-compliance of current Good Manufacturing Practice (cGMP) regulations were identified, Sun Pharmaceutical Industries said in a statement.

Sun Pharmaceutical Industries said it remains fully committed to compliance and has already initiated several corrective steps to address the observations made by the US FDA. The contribution of this facility to Sun Pharma's consolidated revenues is negligible. Sun Pharma said that there is no change in the company's consolidated sales growth guidance for the year ending March 2014.

At the time of the announcement of Q3 December 2013 results last month, Sun Pharmaceutical Industries had raised its consolidated revenue growth guidance to 29% for the year ending 31 March 2014, from the previous guidance of 25%. The guidance is at constant exchange rate.

Sun Pharmaceutical Industries' 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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