FDA observation, forensic audit by Sebi may keep Sun Pharma under pressure

Halol plant observations add to worries on the extent of upsides from specialty drugs

The Sun Pharma stock shed about 1 per cent in trade, taking its losses to 5 per cent from its recent highs. The weakness in the stock was because of inspections by the American drug regulator (Food and Drug Administration or FDA) at its Halol plant in Gujarat which resulted in eight observations, as well as a downward revision of speciality drug payoffs.

While observations are negative, the extent of the violation of good manufacturing practices is not clear. The other overhangs for the Street, according to analysts at Credit Suisse, are the adverse outcome from the price-fixing investigation in the