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Sun Pharma witnesses upward momentum

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Capital Market
Last Updated : Sep 26 2014 | 1:30 PM IST

Sun Pharmaceutical Industries rose 4.67% to Rs 809.95 at 13:05 IST on BSE on reports the company has received a Form 483 from the US drug regulator on a Gujarat facility.

Meanwhile, the BSE Sensex was down 135.08 points, or 0.51%, to 26,333.28.

On BSE, so far 5.94 lakh shares were traded in the counter, compared with an average volume of 1.75 lakh shares in the past one quarter.

The stock hit a high of Rs 821.70 and a low of Rs 748.15 so far during the day. The stock hit a 52-week high of Rs 877.40 on 3 September 2014. The stock hit a 52-week low of Rs 552.50 on 14 March 2014.

The stock had underperformed the market over the past one month till 25 September 2014, falling 9.32% compared with 0.12% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 22.31% as against Sensex's 4.56% rise.

The large-cap company has an equity capital of Rs 207.12 crore. Face value per share is Re 1.

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According to reports, a team of US Food and Drug Administration (USFDA) inspectors, which recently conducted a surprise audit on a Gujarat unit of Sun Pharmaceutical Industries (Sun Pharma), has submitted Form 483.

Submission of Form 483 means the FDA team found certain procedural issues with respect to the plant's running and seeks corrective action but may not imply an immediate import ban.

The FDA team has reportedly made 23 observations (four for injectable units, four for oral solid unit and rest for the quality-control lab) at the Halol unit in Gujarat, which accounts for about 25% of Sun Pharma's US sales. The US market accounts for 60% of the company's total sales.

Reports suggested that the USFDA did not find any data integrity issues with the plant, hence that chances of an import alert would be low.

Sun Pharmaceutical Industries reported consolidated net profit of Rs 1390.51 crore in Q1 June 2014 as compared to net loss of Rs 1276.10 crore in Q1 June 2013. Net sales rose 12.8% to Rs 3926.85 crore in Q1 June 2014 over Q1 June 2013.

Sun Pharmaceutical Industries is an international specialty pharmaceutical company.

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First Published: Sep 26 2014 | 1:06 PM IST

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