Sun Pharma shares tank over 5% on USFDA import ban

Shares of Sun Pharmaceutical Industries today fell by over 5 per cent after the US Food and Drug Administration banned import of drugs from the company's Karkhadi facility in Gujarat for violation of manufacturing norms.
Sun Pharma's scrip ended the day at Rs 573.60, down 5.03 per cent at the BSE. During the day, the drug firm's stock declined by 6.35 per cent to Rs 565.60.
At the NSE, the scrip plunged 5.12 per cent to settle at Rs 573.35.
Tracking losses in the stock, the company's market value declined by Rs 6,300 crore to Rs 1,18,798 crore.
"This 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.

The company remains fully committed to compliance and has already initiated several corrective steps to address the observations made by the USFDA, it added.

Sun Pharma, which is lndia's biggest drug-maker by value, said the import ban would have negligible affect on the company's revenues.
"The contribution of this facility to Sun Pharma's consolidated revenues is negligible. Sun Pharma maintains its FY 2013-14 consolidated sales growth guidance," it said.
The company's Karkhadi facility manufactures antibiotics and active pharmaceutical ingredients (APIs). The company has 10 manufacturing sites in India.
According to the information available on USFDA website, an import alert enables 'detention without physical examination of drugs from firms which have not met drug manufacturing norms'.