Sun Pharmaceutical Industries fell 0.82% to Rs 582.50 at 10:14 IST on BSE after US drug regulator warned that the response to an import ban on one of the company's plants lacked sufficient corrective actions.
Meanwhile, the BSE Sensex was down 62.80 points, or 0.26%, to 24,314.08.
On BSE, so far 65,000 shares were traded in the counter, compared with an average volume of 2.13 lakh shares in the past one quarter.
The stock hit a high of Rs 586 and a low of Rs 575.20 so far during the day. The stock hit a 52-week high of Rs 653.10 on 3 March 2014. The stock hit a 52-week low of Rs 458 on 13 June 2013.
The stock had underperformed the market over the past one month till 20 May 2014, falling 5.93% compared with 7.72% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 5.17% as against Sensex's 18.70% rise.
The large-cap company has an equity capital of Rs 207.12 crore. Face value per share is Rs 1.
The US Food and Drug Administration (FDA) warned Sun Pharmaceutical Industries (Sun Pharma) the responses given by it on the import alert on its Karkhadi plant in Gujarat lacked sufficient corrective actions.
The FDA banned imports from Sun Pharma's Karkhadi plant in Gujarat in March 2014.
In the warning letter dated 7 May 2014 and posted on the FDA website on Tuesday, 20 May 2014, the regulator said Sun Pharma failed to ensure laboratory records had complete data and that manufacturing staff had inadequate training and experience.
Your firm frequently performs 'unofficial testing' of samples, disregards the results, and reports results from additional tests, the FDA said in the letter addressed to Sun Pharma CEO Subramanian Kalyanasundaram.
The Karkhadi plant makes the antibiotic cephalosporin. Sun Pharma had said in March 2014 that the import ban would have negligible financial impact.
On a consolidated basis, Sun Pharmaceutical Industries' net profit surged 73.7% to Rs 1531.09 crore on 50.3% growth in net sales to Rs 4286.59 crore in Q3 December 2013 over Q3 December 2012. The company will announce Q4 results on 29 May 2014.
Sun Pharmaceutical Industries is an international specialty pharmaceutical company with over 72% sales from global markets. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in US, India and several other markets across the world.
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