India’s Sun Pharma shares slump after FDA warning letter

23 Dec 2015 | Author: | No comments yet »

12 top stocks in focus today: Sun Pharma, IVRCL and more.

Shares of Sun Pharmaceuticals were in focus early Monday trade, with the stock taking a knock of over 7 percent after the company received received a warning letter from the USFDA over violation of manufacturing norms in its facility at Halol in Gujarat.Shares in Mumbai-based Sun Pharmaceuticals fell as much as 7.4 per cent on Monday after the US Food and Drug Administration warned of violations at its plant in Halol, its largest manufacturing facility.

In a release issued to BSE, Sun Pharma said, “Post the September 2014 inspection, the USFDA has withheld future product approvals from the Halol facility. Mphasis: Shares of the IT firm were trading 1.11 per cent down at Rs 491.00 after it said that its margins will take a hit of up to 120 basis points in the December quarter owing to recent floods in Chennai. Year-to-date, the stock is down 10.41%. “Sun Pharma responded to the US FDA inspection observations with a robust remediation process that is still on-going, with significant investments in automation and training to enhance its quality systems.

This situation may continue until all issues are resolved. “Sun Pharma expects to request a re-inspection by USFDA upon completion of its remediation commitments,” According to a Reuters report, the fresh warning letter could mean the regulatory may ban imports from the plant under scrutiny if the problem persists for long. Mphasis has about 3,000 employees in Chennai Jubilant Life: Share price of the company climbed over 2 per cent(at 11.17 am) after the Reserve Bank of India (RBI) allowed foreign institutional investors (FIIs) and registered foreign portfolio investors (RFPI) to buy up to 45 per cent stake in Jubilant Life Sciences under the portfolio investment scheme. Sun Pharma has been working with external consultants to ensure its remediation activities have been completed in an appropriate manner,” the company said in its statement, Mint reported.

For investors, the cause of concern is that the Halol plant makes up about 15 percent of Sun Pharma’s sales in its largest market, the United States. The plant assumes significance for the company as it can manufacture injectable products, which are difficult to make and hence a niche and lucrative market for drugmakers.

Tata Motors: The automaker has entered the top-50 league of the world’s biggest companies in terms of their R&D investments, topped by German automaker Volkswagen. Manappuram Finance: will purchase 100 per cent equity shares of Manappuram Insurance Brokers pursuant to approval received from Insurance Regulatory and Development Authority (IRDA). Most of the issues in the warning letter are the same as those in the report sent in September, Sun Pharma’s Managing Director and Indian billionaire Dilip Shanghvi, said in a conference call late on Saturday. Infosys, Wipro, TCS and Tech Mahindra: Stocks of the Indian IT major will be in focus as US President Barack Obama on Saturday signed into law a $1.8 trillion spending package which among other things introduces a hefty $4,000 fee for certain categories of H-1B visa and $4,500 for L1 visa. United Bank of India: The bank plans to raise Rs 1,500 crore through preferential allotment of shares.The Board of Directors at its meeting on Friday approved to raise equity capital.

MBL Infrastructures (MBL): The company has been awarded the Project of ‘Rehabilitation and upgradation’ from Jabalpur to Hiran River Section of NH-12 (New NH No. 45) to four -lanes with payed shoulders configuration from 10.400 km to 66.000 km (design length 55.600 kms) in the state of Madhya Pradesh under NHDP- Ill through Engineering, Procurement & Construction (EPC) Basis Contract for the contract price of Rs 414.75 crore from Ministry of Road Transport & Highways.

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