Sun Pharma up 3% on USFDA clean chit to Halol plant
The clearance brought to an end a two-year import ban the US drug regulator had imposed.
By ETMarkets.com |
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NEW DELHI: An all-clear from the USFDA to Sun Pharmaceuticals' Halol plant in Gujarat drove the stock up 3 per cent on Wednesday.
The clearance brought to an end a two-year import ban the US drug regulator had imposed on the plant over quality control issues.
The stock rose 3.26 per cent to hit a high of Rs 556.40 on the BSE today.
The USFDA’s Establishment Inspection Report (EIR) comes days after the company received Voluntary Action Indicated (VAI), which indicated that clearance for the plant was not too far away, ET reported.
Last week, Sun Pharma jumped 8 per cent to a 10-month high on the news of VAI. The upgradation status of the plant means that the response and remediation work of Sun Pharma have satisfied the US regulator, and critical issues in the company are virtually resolved, said Surjit Pal, an analyst with brokerage firm Prabhudas Lilladher.
However, he was not keen to drop his guard altogether. “We remain cautious of the real opportunities of upcoming approvals,” Pal said in his note last week.
This call was based on the fact that a majority of the launches by Sun will be irrelevant as older molecules are crowded with strong competition and price erosion.
The clearance brought to an end a two-year import ban the US drug regulator had imposed on the plant over quality control issues.
The stock rose 3.26 per cent to hit a high of Rs 556.40 on the BSE today.
The USFDA’s Establishment Inspection Report (EIR) comes days after the company received Voluntary Action Indicated (VAI), which indicated that clearance for the plant was not too far away, ET reported.
Last week, Sun Pharma jumped 8 per cent to a 10-month high on the news of VAI. The upgradation status of the plant means that the response and remediation work of Sun Pharma have satisfied the US regulator, and critical issues in the company are virtually resolved, said Surjit Pal, an analyst with brokerage firm Prabhudas Lilladher.
However, he was not keen to drop his guard altogether. “We remain cautious of the real opportunities of upcoming approvals,” Pal said in his note last week.
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This call was based on the fact that a majority of the launches by Sun will be irrelevant as older molecules are crowded with strong competition and price erosion.
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