 "Sun Pharma rebounds 5% after clarification on import alert for Karkhadi unit")
Sun Pharmaceutical Industries has moved higher by 1.2% at Rs 581, bouncing back nearly 5% from its intra-day low levels. The stock had tanked 8.6% from Rs 604 on March 12, after the US Food and Drug Administration (FDA) had issued an import alert for all products manufactured at its plant at Karkhadi, Gujarat.
The bounce-back comes after the drug maker said that the contribution of the company’s facility located at Karkhadi to total revenues is negligible and it maintains its current fiscal (FY2013-14) consolidated sales growth guidance.
The stock opened at Rs 571 and touched a low of Rs 553 in early morning deals on the BSE. A combined 6.2 million shares changed hands on the counter till 1430 hours on the BSE and NSE.
Sun Pharma said this import alert was issued by 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.
The company remains fully committed to compliance and has already initiated several corrective steps to address the observations made by the US FDA, it added.
The bounce-back comes after the drug maker said that the contribution of the company’s facility located at Karkhadi to total revenues is negligible and it maintains its current fiscal (FY2013-14) consolidated sales growth guidance.
The stock opened at Rs 571 and touched a low of Rs 553 in early morning deals on the BSE. A combined 6.2 million shares changed hands on the counter till 1430 hours on the BSE and NSE.
Sun Pharma said this import alert was issued by 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.
The company remains fully committed to compliance and has already initiated several corrective steps to address the observations made by the US FDA, it added.