Sun Pharmaceutical Industries (Sun Pharma) shares recovered all their intraday losses on Monday morning, after the Mumbai-based drug maker said it continues to cooperate with US regulator FDA and will take all necessary steps to resolve issues at its facility in Halol, Gujarat. The Sun Pharma stock rose as much as 1.11 per cent to Rs 341.90 apiece on the BSE after starting the session at Rs 329 compared to its previous close of Rs 338.15. (Track Sun Pharma Shares Here)
In a regulatory filing late on Sunday, the company said it continues to manufacture and distribute existing products for the US market.
Earlier, the US Food and Drug Administration had classified the company’s Halol facility as “official action indicated”, withholding approval of any pending applications from the unit “till the outstanding observations are resolved”.
Sun Pharma said it continues to cooperate with the US drug regulator and will take “all necessary steps to resolve these issues and to ensure that the regulator is completely satisfied” with its remedial action.
Sun Pharma said this is unlikely to have an adverse impact on its current business from the facility.
The drug maker said it remains committed to the FDA’s Current Good Manufacturing Practice (CGMP) regulations and “in supplying high-quality products to its customers and patients globally”.
At 10:57 am, Sun Pharma shares traded 0.24 per cent higher at Rs 338.95 on the BSE, outperforming the benchmark S&P BSE Sensex index which was down 1.49 per cent amid losses in financial, auto and metal stocks.
The coronavirus outbreak has disrupted international businesses dependent on Chinese supplies. Industry experts expect Indian generic drug makers to face supply shortages from China if the coronavirus pandemic drags on.