Sun Pharmaceutical - USFDA to Lift Import Alert Regulator to permit supply of products from Mohali: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

"Sun Pharmaceutical was informed by the US FDA, that it will lift the Import Alert imposed on the Mohali (Punjab) manufacturing facility and remove the facility from the Official Action Initiated (OAI) status. This proposed action will clear the path for Sun Pharmaceutical to supply approved products from the Mohali facility to the US market, subject to normal US FDA regulatory requirements. The Mohali facility was inherited by Sun Pharmaceutical as part of its acquisition of Ranbaxy Laboratories Ltd. in 2015. The US FDA had taken action against the Mohali facility in 2013 when it ordered the facility to be fully subject to Ranbaxy's Consent Decree of Permanent Injunction. Certain conditions of the consent decree will continue to be applicable to the Mohali facility. This will pave way for better growth for the company in US and improvement in asset utilisations and hence return ratios in long run. We maintain our BUY rating with a price target of INR 847."

Shares of SUN PHARMACEUTICAL INDUSTRIES LTD. was last trading in BSE at Rs.708.25 as compared to the previous close of Rs. 683.55. The total number of shares traded during the day was 1234645 in over 23959 trades.

The stock hit an intraday high of Rs. 728.45 and intraday low of 678.1. The net turnover during the day was Rs. 878616268.

Source : Equity Bulls

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