Sun Pharma Shares Tank As US FDA Lists Gujarat Plant Under ‘Import Alert’

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Sun Pharma Shares Tank As US FDA Lists Gujarat Plant Under ‘Import Alert’
Credit: © Reuters.

By Malvika Gurung

Investing.com -- In the latest filing to the domestic stock exchanges, the pharmaceutical behemoth Sun Pharmaceutical Industries (NS: SUN ) announced that its facility in Halol, Gujarat has been listed under an ‘Import Alert’ by the US health regulator, US Food and Drug Administration (FDA).

An import alert means that no future shipments for the pharma giant’s products manufactured at the said facility will be allowed to be admitted to the US market. 

This condition will remain in effect until Sun Pharma’s facility in Halol becomes compliant with the health regulator’s Current Good Manufacturing Practice (cGMP) standards.

The US FDA has pinned 14 products from the Halol facility under the Import Alert. Until then these products’ admission to the US market shall remain refused. The regulator conducted the inspection at Sun Pharma’s Halol (Gujarat) facility from April 26-May 9, 2022.

As a result, shares of Sun Pharmaceutical declined 2.76% lower at Rs 990.1 apiece, after tanking almost 4% to Rs 981.2 apiece in the session today. 

The mega-cap pharma major informed the bourses on Thursday that the Halol facility’s supply to the US market accounted for almost 3% of its total revenues, in FY22 (the previous fiscal year), including the 14 excluded products mentioned above.

“Sun Pharma remains committed to being cGMP compliant and in supplying high-quality products to its customers and patients globally,” the filing read.

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