Sun Pharma turns volatile after three observations for Halol facility

The stock was up 3.5% at Rs 561 on the BSE at 02:34 pm, after the company said the USFDA issued Form 483, with three observations, for its Halol facility in Gujarat.

Sun Pharmaceutical Industries has turned volatile, trading 3.5% higher at Rs 561 on the BSE at 02:34 pm, after the company said the US Food and Drug Administration (USFDA) issued Form 483, with three observations, for its Halol facility in Gujarat.

The stock rallied nearly 6% to Rs 572 in intra-day trade, has fallen to Rs 550 at 02:23 pm post announcements. The company informed the stock exchanges at around 02:19 pm.

In past two trading day, the stock more than 7% from Rs 525 on February 21, 2018, after falling 6% on Wednesday.

The trading volumes on the counter more than doubled with a combined 27.53 million shares changed hands on the BSE and NSE so far.

“The US FDA conducted a Good Manufacturing Practices (GMP) inspection of Sun Pharmaceutical Industries’ Halol facility (Gujarat, India) from February 12-23, 2018. At the conclusion of the inspection, the agency issued a Form 483, with three observations,” the company said in a regulatory filing.

The company is preparing the response to the observations, which will be submitted to the US FDA within 15 business days, it added.

Sun Pharma said it is committed to addressing these observations promptly. The company remains committed to working closely with the US FDA and continues to enhance its GMP compliance on an ongoing basis.