Sun Pharma shares dip 4.5% on warning letter from USFDA

Shares of Sun Pharmaceutical fell by 4.5%, wiping out Rs 8,654.59 crore from its market valuation today, as the company received a warning letter from the USFDA over violation of manufacturing norms at its Halol facility in Gujarat.

After falling 7.39% to Rs 732 intra-day, the stock finally ended at Rs 754.45, down 4.55% on BSE.

At NSE, the stock fell by 4.54% to close at Rs 754.20.

Consequently, the company's market valuation fell by Rs 8,654.59 crore to Rs 1,81,566.41 crore.

The stock was the top loser among the blue-chip Sensex and Nifty scrips.

On the volume front, 9.47 lakh shares of the company changed hands at BSE and over one crore shares were traded at NSE during the day.

The warning letter follows inspection of the facility in September 2014 by US Food and Drug Administration (USFDA) inspectors.

"Post the inspection, the USFDA has withheld future product approvals from the Halol facility. This situation may continue until all issues are resolved.

"Sun Pharma expects to request a re-inspection by USFDA upon completion of its remediation commitments", the company said in a statement on Saturday.

"Sun Pharma will respond to this warning letter with a detailed plan within the stipulated timeframe", it said.