Sun Pharma gets eclipsed

The star of the day is most certainly Sun Pharma, only this star is not exactly shining bright. The company is in the news for all the bad reasons. In fact the whole 2015, Sun has been eclipsed with difficult news.

Today, once again it is a US FDA warning letter. Over the weekend, on Saturday, the company received a letter from the US FDA – a warning letter for its Halol factory in Gujarat, after its inspection in Sept 2014. The FDA has withheld future product approvals from this facility and the company has said that it expects to seek a re-inspection by the FDA on completing its “remediation commitments.”

This is like getting the Midas touch, only in the reverse ever since it took over Ranbaxy, whose history with US FDA has been pretty stormy. In fact Ranbaxy even now faces Us import bans on four of its facilities.

The stock is the top loser currently, tumbling down almost 7.5% intra day to Rs.732. Its 52-week low stands at Rs.706.40.