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USFDA to lift import ban on Sun Pharma's Mohali plant

Press Trust of India  |  New Delhi 

The US health regulator has proposed to lift import alert on Sun Pharma's Mohali-based plant, paving the way for the drug major to resume to the American market after a gap of nearly four years.

The company has been informed by the US Food and Drug Administration (USFDA) that it will lift the import alert imposed on the Mohali plant and remove the facility from the Official Action Initiated (OAI) status, Industries said in a statement.

"This proposed action will clear the path for Sun Pharma to supply approved products from the Mohali facility to the US market, subject to normal USFDA regulatory requirements," it added.

Following the announcement, of Sun Pharma rose by 3.61 per cent to Rs 708.25 at close on

The Mumbai-based drug major had inherited the Mohali facility as part of its of Laboratories in an all-stock worth USD 4 billion in April 2015.

The USFDA had taken action against the Mohali facility in 2013 when it ordered the plant to be fully subject to Ranbaxy's Consent Decree of Permanent Injunction.

Certain conditions of the consent decree will continue to be applicable to the Mohali facility, Sun Pharma said.

"This development illustrates Sun Pharma's commitment to work closely with the USFDA and strive for 100 per cent current good manufacturing practices (cGMP) compliance at its manufacturing facilities," the statement said.

In September 2013, the USFDA had issued an import alert on drugs produced at then Ranbaxy's Mohali plant for violation of current good manufacturing practices.

in May 2013 had pleaded guilty to "felony charges" relating to manufacture and distribution of certain 'adulterated' drugs made at two units in India and had agreed to pay USD 500 million to US authorities as penalty.

This followed a series of action taken by the USFDA, which in 2008 banned import of 30 generic drugs produced by at its Dewas (Madhya Pradesh) and Paonta Sahib (Himachal Pradesh) plants for violation of manufacturing norms.

All the four manufacturing facilities of erstwhile Ranbaxy - Mohali and Toansa in Punjab, Dewas in Madhya Pradesh and Paonta Sahib in Himachal Pradesh - have been banned by the USFDA from exporting drugs to the US market.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 14 2017. 19:32 IST