Sun Pharmaceutical US Update: Angel Broking

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

"Sun Pharmaceutical Industries is reported to have received 11 observations from the US health regulator for its Dadra unit. While inspecting the plant, the US Food & Drug Administration found incomplete lab records at the Pharmaceutical major's Dadra plant. These observations include failure to produce appropriate master or control record for each batch of drugs and failure to properly investigate batches that don't meet specifications. Inspection of the plant by USFDA was concluded in the first week of this month. Dadra site is the biggest unit for the company after Halol plant, for supplying drug in the United States. In FY2016, Halol contributed ~7-9% of total sales and >15% of US sales for the company. While currently these are only observations and will not lead to any negative impact on the earnings of the company. Though if not rectified could let to significant impact on US numbers. Apart from these two facilities, the company has only one facility in Gujarat in India, which is for API and formulation both. Also, recently the company got its Mohali facility, came out of the US import Alert. Currently, we maintain our BUY on the stock with target price of INR 847."

Shares of SUN PHARMACEUTICAL INDUSTRIES LTD. was last trading in BSE at Rs.640.05 as compared to the previous close of Rs. 655.85. The total number of shares traded during the day was 913558 in over 8878 trades.

The stock hit an intraday high of Rs. 659.9 and intraday low of 637.35. The net turnover during the day was Rs. 586791909.

Source : Equity Bulls

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