Sun Pharma slips on buzz unit gets USFDA observations

Sun Pharmaceutical Industries fell 2.04% to Rs 642.50 at 11:11 IST on BSE on report that the company has received 11 observations from the US drug regulator for its Dadra unit.

Meanwhile, the S&P BSE Sensex was up 68.83 vpoints, or 0.23% to 29,491.22.

On the BSE, 5.41 lakh shares were traded in the counter so far, compared with average daily volumes of 3.65 lakh shares in the past one quarter. The stock had hit a high of Rs 659.90 and a low of Rs 638.75 so far during the day. The stock hit a 52-week high of Rs 854.50 on 4 August 2016. The stock hit a 52-week low of Rs 572.40 on 9 November 2016.

The stock had underperformed the market over the past one month till 20 April 2017, falling 6.51% compared with 0.87% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 2.33% as against Sensex's 8.83% rise.

The large-cap company has equity capital of Rs 239.93 crore. Face value per share is Re 1.

According to a media report, while inspecting the plant, the US Food & Drug Administration (USFDA) found incomplete lab records at Sun Pharmaceutical Industries' Dadra plant. These observations include failure to produce appropriate master or control record for each batch of drugs and failure to properly investigate batches that does not meet specifications. Inspection of the plant by USFDA was concluded in the first week of this month, report added.

Report suggested that the Dadra site is the biggest unit for the company after Halol plant, for supplying drug in the United States.

On a consolidated basis, Sun Pharmaceuticals Industries' net profit declined 11.23% to Rs 1721.85 crore on 8.41% rise in net sales to Rs 7683.24 crore in Q3 December 2016 over Q3 December 2015.

Sun Pharma is the world's fourth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

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