Sun Pharma stocks surge 6 per cent, heads towards biggest daily gain in 5-1/2 months

Shares of Sun Pharmaceutical Industries gained more than 6 per cent on Friday, heading towards biggest single-day gain since April 9.

Credit Suisse said Sun Pharma has received a Form 483 from the US FDA on a Gujarat facility. FDA's Form 483 is a letter that notifies company of objectionable conditions.

Traders also said that there are low chances of an import alert. Credit Suisse noted that letter given to Sun contained "no data integrity issues" and says chances of an import alert are "low."

Ranbaxy Laboratories, which is in the process of being acquired by Sun Pharma, is also up 5.5 percent.

Sun Pharma said on September 12 that the FDA inspected its plant, but expected "no material impact."

Sun Pharma spokesman did not  immediately respond to request for comment.

(Reuters)

* An earlier version of the story mentioned Ranbaxy Laboratories as a unit of Sun Pharma. Actually, it's in the process of being acquired by Sun Pharma. Correction has been done.