Sharon Bio-Medicine is showing a complete contrary behavior to the news, which should have actually put the stock in the red. The news is that the US Food and Drug Administration (FDA) has issued a warning letter to Sharon Bio-medicine for failure to pay generic drug user fee by its owner for three years – 2013, 2014 and 2015, though the amount to be paid has not be specified anywhere in the letter. The FDA has said that its Dehradun-based facility would be barred from shipping products to the US if the dues are not cleared. This due is a facility fee, required by the Generic Drug User Fee Amendments of 2012 (GDUFA).

Under GDUFA, generic pharmaceutical companies are supposed to pay a fee to the US regulator for many of its routine activities, including generic drug filings and manufacturing facility inspections.

Despite this news, the stock price is up in the green, currently at 20.22, up almost 3%. Probably the market knows ahead of us that the company will be soon paying up the money and it is happy that the US FDA letter is about non-payment and not about any serious manufacturing violation like the other companies.