What is the latest FDA problems that Sun Pharma is facing?
Answer
Answer
It looks like the US FDA is back to haunt Sun Pharma and it is once again to do with the Halol Plant in Gujarat MP border. On Tuesday 10th May, the stock of Sun Pharma was 2% lower after the company received 10 observations from the USFDA after inspection of its Halol plant. Observations are not necessarily negative but they are areas where the FDA has sought clarification from the company and where clarification has to be provided.
The stock of Sun Pharma has already fallen quite sharply after touching its high recently. The Halol Plant was due for re-inspection (following its 2015 inspection). However, the inspection had been delayed due to the COVID pandemic. Now Sun Pharma has to submit a detailed response to the FDA on the ten observations. The Halol plant, which manufactures complex drugs for the US market, has been in trouble since 2015 and the saga continues.