Sun Pharma stock gains 8% as company clears FDA's Halol plant hurdle

The Halol plant was reinspected by the FDA in the March quarter, and had received three Form 483 observations

Sun Pharmaceutical Industries was the top gainer among the Sensex stocks, rising more than 8 per cent on Friday, following news that the company’s Halol plant had been conferred Voluntary Action Indicated (VAI) status by the US Food and Drug Administration.

VAI means that the US drug regulator had found objectionable conditions, but these did not warrant regulatory significance. The street thus is sensing a resolution of the “warning letter” issued to its Halol plant, and consequently, a turnaround in the fortunes of Sun Pharma.

Amey Chalke at HDFC Securities said the FDA classification of the Halol plant as VAI