Sun Pharma shares slip 3% intraday as shipments from Mohali facility temporarily suspended
Sun Pharma stock has gained 5.88 per cent in a year and fallen 2.29 percent in 2023. A total of 0.52 lakh shares of the firm changed hands amounting to a turnover of Rs 5.08 crore on BSE.
- Apr 24, 2023,
- Updated Apr 24, 2023 4:14 PM IST
Shares of Sun Pharma slipped 2.95per cent intraday to Rs 960 against the previous close of Rs 989.15 on BSE. Later, the stock closed 1% lower at Rs 979.25. The share opened 3.14 per cent lower at Rs 860.20. Sun Pharma stock has gained 5.88 per cent in a year and fallen 2.29 percent in 2023.
A total of 0.52 lakh shares of the firm changed hands amounting to a turnover of Rs 5.08 crore on BSE. The market cap of the firm fell to Rs 2.34 lakh crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 49.8, signaling it's trading neither in the overbought zone nor in the oversold zone. Sun Pharma shares have a beta of 0.6, indicating low volatility in a year. Shares of Sun Pharma stand higher than the 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
Sun Pharmaceutical said that there would be a temporary pause in the release of final product batches from its Mohali manufacturing unit until it implements the US Food and Drug Administration (FDA) mandated measures.
The company said it has received a letter titled “Consent Decree Correspondence/Non-Compliance Letter" from the US FDA.
"US FDA has directed the Company to take certain corrective actions at the Mohali facility before releasing further final product batches into the US," the company said.
"These actions include, among others, retaining an independent CGMP expert to conduct batch certifications of drugs manufactured at the Mohali facility," it added further.
It further said that the company is taking the required corrective steps, but there will be a temporary pause in the release of batches from Mohali until US FDA-mandated measures are implemented. Therefore, US shipments from Mohali will resume once these measures are in place.
Sun Pharma's Mohali facility came under the scanner of the US regulator in August last year when it carried out an inspection of the plant from August 3 to August 12, 2022. US FDA had classified the inspections as “Official Action Indicated" (OAI).
After the US FDA inspects a manufacturing facility, it puts the facility under question in one of the three categories- No Action Indicated (NAI), Voluntary Action Indicated (VAI), or Official Action Indicated (OAI).
Official Action Indicated means that objectionable conditions were found and regulatory action should be recommended, according to the US FDA official website.
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Also read: HDFC, IndusInd Bank, RIL, Infosys, Tata Steel: Banks among 9 Nifty stocks that saw FPI selloff in Q4
Shares of Sun Pharma slipped 2.95per cent intraday to Rs 960 against the previous close of Rs 989.15 on BSE. Later, the stock closed 1% lower at Rs 979.25. The share opened 3.14 per cent lower at Rs 860.20. Sun Pharma stock has gained 5.88 per cent in a year and fallen 2.29 percent in 2023.
A total of 0.52 lakh shares of the firm changed hands amounting to a turnover of Rs 5.08 crore on BSE. The market cap of the firm fell to Rs 2.34 lakh crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 49.8, signaling it's trading neither in the overbought zone nor in the oversold zone. Sun Pharma shares have a beta of 0.6, indicating low volatility in a year. Shares of Sun Pharma stand higher than the 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
Sun Pharmaceutical said that there would be a temporary pause in the release of final product batches from its Mohali manufacturing unit until it implements the US Food and Drug Administration (FDA) mandated measures.
The company said it has received a letter titled “Consent Decree Correspondence/Non-Compliance Letter" from the US FDA.
"US FDA has directed the Company to take certain corrective actions at the Mohali facility before releasing further final product batches into the US," the company said.
"These actions include, among others, retaining an independent CGMP expert to conduct batch certifications of drugs manufactured at the Mohali facility," it added further.
It further said that the company is taking the required corrective steps, but there will be a temporary pause in the release of batches from Mohali until US FDA-mandated measures are implemented. Therefore, US shipments from Mohali will resume once these measures are in place.
Sun Pharma's Mohali facility came under the scanner of the US regulator in August last year when it carried out an inspection of the plant from August 3 to August 12, 2022. US FDA had classified the inspections as “Official Action Indicated" (OAI).
After the US FDA inspects a manufacturing facility, it puts the facility under question in one of the three categories- No Action Indicated (NAI), Voluntary Action Indicated (VAI), or Official Action Indicated (OAI).
Official Action Indicated means that objectionable conditions were found and regulatory action should be recommended, according to the US FDA official website.
Also read: IndusInd Bank Q4 results: Net profit jumps 46%; lender declares Rs 14 dividend
Also read: HDFC, IndusInd Bank, RIL, Infosys, Tata Steel: Banks among 9 Nifty stocks that saw FPI selloff in Q4