USFDA decision not a big setback, fundamentals intact: Sudipbandyopadhyay on Sun Pharma

In a chat with ET Now, market expert Sudip Bandyopadhyay, shares his view on the revocation of drug SPARC's drug approval by USFDA on concerns over Sun Pharma's Halol plant.

ET Now: What has gone wrong with Sun Pharma? Has not Sun Pharma corrected enough? FY16 could be a washout year, but FY17 could be a great year for the drug maker. This is what the management seems to be indicating. It is doing all the right launches and again there is a buzz in the market that the Halol problem will be cleared sooner than later.

Sudip Bandyopadhyay: I agree. We also believe that a lot of problems, which Sun is facing, are things of the past. Even the Ranbaxy integration - after a lot of hiccups - is progressing smoothly.

The Monday's downfall has got to do with the USFDA revoking permission for that seizure drug of Sun Pharma. That is definitely a setback for the company, but it is not a major one. Of course, the negative news made the market react and the corrected. Otherwise, the long-term story, the FY17 story for the company remains intact.