Sun Pharma Share Price hits 52 Week Low

After a long wait, the US FDA has finally commenced its scheduled inspection of the Company’s Mohali manufacturing site of Ranbaxy, a company acquired two years ago by Sun Pharmaceutical as part of a US$ 4 billion deal with Japanese drug maker Daiichi Sankyo. Sources stated that the Mohali site inspection started on Monday and may continue for a week.

Sun Pharma declined to comment on the issue.

On the back of this news, Sun Pharma share price dropped as much as 4 per cent to make a new 52 week low of Rs 571.90.

US FDA, the US drug regulator had imposed an import alert on the facility following all the issues related to manufacturing violations. Mohali is one of the four sites of Ranbaxy that faced punitive action from the regulatory body.

Ranbaxy pleaded guilty and was fined US$ 500 million for a settlement in the year 2013. Across the sites, the regulatory body had detected breaches in product filings from the as data manipulation and a number of violation of standard manufacturing practices.

In a series of investigations that started in the year 2008, Ranbaxy’s four sites at Paonta Sahib, Dewas, Toansa as well as Mohali were banned from the US market. However a few countries had cleared the manufacturing units.

Mohali was the most modern facility of Ranbaxy and had also shipped heart drug atorvastatin, the pharma’s most prized opportunity in the US generics market. In the year 2013 the site was banned by the US FDA. This site is seen to be best placed to clear the FDA inspections as the lapses were relatively minor said an industry source.

According to the source it may be too early to reach a conclusion as the inspection is likely to be very granular and may comb through every record minutely. A few months ago, external quality control consultants had certified the Mohali site to be fit to undergo the US FDA inspections, according to sources. Industry sources also said that the Pharma major’s Halol site may also be inspected in a short time but this could not be confirmed.

Sun Pharma share price is currently trading at Rs 618.95, down by 2.59 per cent. A total of 32,25,316 shares of the company have been traded on the counter of NSE aggregating to a total amount of Rs 19,526.06 lacs. Get the most important support and resistance levels of the share price at Sun Pharma share price history.

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